DENMARK - PFA, Denmark's second largest pension fund, bought an office building in Copenhagen for DKK515m (€69m) in an investment with a starting yield of 5%.

The property in Weidekampsgade on the island of Amager was sold by HK, the trade union for commercial and clerical workers.

The union uses the building as its headquarters and is the sole occupant.

Michael Willumsen, director at PFA Ejendomme, the pension fund's real estate arm, said: "The property fits in well with our real estate portfolio of well-maintained, newer office properties in good locations."

The building was let in its entirety to HK on a 12-year lease.

"The property has a starting yield of more than 5%, and we see it as a good real estate investment," Willumsen said.

HK had the building erected 10 years ago.

Kim Simonsen, chairman of the union, said: "In general, we don't believe in tying up our assets in bricks and mortar. We now have the opportunity to sell the property for a good price, and the deal is economically advantageous for HK, and therefore its members."

He said HK earned around DKK175m from the deal.

The building has 20,000 square metres of space and is located about 500 metres from the city's main railway station, and 10 minutes' drive from the airport.

PFA described the surrounding area as attractive, with other new office buildings in the vicinity.

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