A Charter Hall fund has bought an SPC industrial property in Shepparton, Victoria for $66 million through a sale and leaseback deal, representing an initial passing yield of 6.1%.

The property is SPC’s main food production, processing and distribution site in Australia and has more than 126,000 sqm of gross lettable area on a 23.4-hectare site, representing 54% site coverage.

The deal provides Charter Hall’s Direct Industrial Fund No.4 with a 30-year triple net lease structure, including $4 million in initial commencement rent and an annual rental review profile of CPI + 0.75%.

The property was in the town centre of Shepparton, which is located two hours north of Melbourne.

“The SPC acquisition is consistent with the Fund’s investment strategy, presenting a rare 30-year triple net lease, introduces a new tenant customer to the fund’s portfolio and enhances DIF4’s exposure to the non-discretionary food industry,” Charter Hall Direct CEO Steven Bennett said.

“The acquisition will see DIF4’s WALE extend to 11.2 years, and maintains the fund’s 100% occupancy rate.”

The $2.5 billion unlisted property fund deployed more than $375 million in acquisitions during the second half of last year.

Chris O’Brien, Ben Hegerty and Andrew Bell of CBRE brokered the transaction.

The deal comes after Charter Hall acquired a logistics portfolio for $269.4 million in May last year.

Other industrial deals include the recent Logos-led acquisition of two industrial development sites in Sydney and Melbourne, offering an estimated end value of $640 million.

Centuria Industrial REIT acquired a portfolio of six urban industrial assets located across Melbourne, Sydney and Brisbane worth a combined end-value of $132.4 million last month, following its purchase of four industrial properties across Sydney, Melbourne and Brisbane for $129.4 million last November.

Stockland bought two logistics sites in Sydney’s southwest for $128.5 million and LBP Developments sold a industrial development site in Revesby in Sydney for $16.3 million.

In Queensland, Gateway Capital bought an industrial site in Brisbane for $28 million and SC Capital Partners snapped up an industrial asset on the Gold Coast for $23.2 million last year.

There have also been some significant industrial portfolio deals such as Blackstone’s purchase of GIC’s 49% stake in the Dexus Australian Logistics Trust for about $2.1 billion and Blackstone’s $3.76 billion Milestone industrial portfolio sale last year.