Australian manager Charter Hall has acquired a A$100m (€62m) asset for its flagship industrial fund by way of a sale and leaseback deal.

The manager said the Charter Hall Prime Industrial Fund (CPIF) has bought the 20-hectare industrial site in Dandenong South in south-east Melbourne from Viridian Glass.

The property, occupied by Viridian Glass since the 1960’s, operates as its national headquarters and is the only site that manufactures glass in Australia.

The 77,124sqm property has multiple warehouses, office and ancillary buildings, a small cold store, drive around truck access and multiple parking areas.

In addition, the site provides 4.1 hectares of expansion land for future development.

As part of the sale and leaseback agreement, Viridian Glass will continue their occupation of the property with an 8-year lease.

Charter Hall Industrial CEO, Richard Stacker said: “This transaction with Viridian Glass aligns with our strategy of undertaking sale and leaseback transactions with major corporates and government entities.

“The property was acquired off-market and is testament to our ability to work with corporates to develop customised deal structures that support their broader investment strategies and release capital back into their business.”

Richard Mason, CPIF fund manager, said: “The transaction is consistent with CPIF’s strategy to acquire core industrial and logistics properties close to major road and rail infrastructure, whilst also providing CPIF with a significant, well located, high profile land bank for future development.”

“Industrial landholdings of this size within core infill metropolitan locations are becoming increasingly difficult to secure particularly within the Dandenong South industrial precinct which is currently seeing strong demand from industrial and logistics tenants.”

Following the acquisition of the property, CPIF’s weighting to Sydney and Melbourne industrial markets increases to 64%.

Last month, Charter Hall raised an additional A$725m for CPIF, giving the industrial fund the capacity to grow its assets to over A$5bn.