Danish pension consortium buys €650m of Nordics logistics

Nordic Real Estate Partners (NREP) has sold a €650m logistics portfolio to a consortium of Danish pension funds.

NREP said it had sold the largest portfolio of modern prime logistics in the Nordics to the Medical Doctors’ Pension Fund (Lægernes Pensionskasse), the Danish Pension Fund for Engineers (DIP) and the pension fund for Danish lawyers and economists (JØP).

The sale includes all the underlying assets in the NREP Logistics Fund as well as three Swedish properties from NREP’s C1 Fund.

PFA Pension, the largest private pension fund in Denmark and an existing investor in the NREP Logistics Fund, will re-invest part of its proceeds in the new vehicle set up by the consortium.

DIP and JØP, which recently merged their investment operations, invested in another NREP fund – Nordic Strategies Fund – last year.

Most of the 28 logistics properties, covering 650,000 sqm of space, have been developed by NREP over the past six years and will be continued to be managed by the investment manager.

It is understood that the porfolio attracted bids from a series of global investors.

Jacob Hübertz, CIO at DIP/JØP, said: “The indirect acquisition fits well with our overall strategic objective of increasing our exposure to real estate as well as increasing our allocation to logistics, which is a sector we believe will outperform.

“We are likewise pleased with the consortium of like-minded investors that we have been able to structure around this investment allowing us to take a long term view without losing flexibility.”

Jan Willard, head of alternative investments at Lægernes Pensionskasse: “The consortium is very pleased with this unique Nordic prime portfolio and that we have been able to retain management at attractive terms.

“The latter will ensure continued stability and access to NREP’s experience within the sector.

“We believe the portfolio will not only generate strong income but also offer various value-add initiatives, not least driven by the more than 200,000 sqm of undeveloped land included in the portfolio.”