Charter Hall is looking to raise $30 million before 30 September for the fund, which has been awarded a highly recommended rating by Lonsec.
"The market continues to be attracted to the low volatility and stable income unlisted property provides," Charter Hall Direct Property chief executive Richard Stacker said.
"While we are continuing to see strong interest in quality property investments, investors are looking for defined investment mandates, conservative gearing and certainty around exit mechanisms."
The fund targets an 8.7 per cent a year yield for initial investors. It will invest in new, prime-grade industrial properties that are well-positioned next to major transport routes.
The fund will start with an initial asset in Altona North, Melbourne, which is fully leased to Toll Holdings and valued at $24.4 million.
The company acquired the property for $23.2 million from its joint venture partner industrial developer, CIP.
The Altona North asset is the first of up to $200 million of prime industrial property the fund is targeting to acquire both on and off market.
