Charter Hall Group has raised an additional A$725m (€442.5m) for its industrial property fund, giving the Australian manager’s flagship industrial fund the capacity to grow its assets to over A$5bn.

The Charter Hall Prime Industrial Fund (CPIF) – which currently has a A$3.9bn industrial and logistics portfolio of 63 assets – was oversubscribed as it received capital commitment from both local and offshore investors, the manager said.

David Harrison, Charter Hall Group CEO and managing director, said with global bond yields remaining at multi-year lows, investment conditions were favourable for real assets and capital was continuing to be deployed into the Australian industrial property market.

“Global investment conditions remain very favourable for the Australian commercial property market, which is competitive for high quality long leased investment assets.

“We are seeing continued demand from investors who are seeking investment managers who have a proven strong track record and origination capability to provide access to high-quality core real estate, particularly in the industrial and logistics space.”

Richard Mason, the fund’s manager, said record infrastructure spending on road and rail, combined with rising e-commerce and companies seeking supply chain efficiencies through new highly automated facilities is driving the demand for logistics premises, particularly in Sydney, Melbourne and Brisbane.

“At the same time, supply of modern logistics facilities is low, pushing vacancy rates lower and rents higher.”