EUROPE - Pensions group PKA has bought an office building project in Copenhagen for DKK194m (€26m), which is set for completion next summer.

PKA bought the property - Teglholmen Company House - from NCC Property Development.

It is taking on the project as well as the task of leasing out the 9,227 square meters of space.

So far, none of the building is leased, but a PKA spokesman said the pensions administration group was targeting a return of more than 5% on the investment.

"In the past decade, our investments in real estate have returned about 10%," he said.

The building has green credentials, PKA said, with the developer having worked to minimise the environmental impact of both the construction process and the use of the property.

Apart from being classified as a Green Building, it has been agreed that it will be environmentally certified under the Breeam system in the 'Very Good' category, PKA said.

Tenants will also be able to take on a 'Green Lease' - a voluntary agreement between landlord and tenant aiming to reduce the environmental impact from the use of the property.

PKA head of Property Nikolaj Stampe said: "Environmentally friendly buildings will be increasingly in demand in the future, and we are convinced these conditions will attract and retain tenants and contribute to safeguarding the property's value.