The pension fund for Danish teachers, Lærernes Pension, has announced an investment deal worth more than DKK500bn (€67m) to build 280 homes in a development zone to the north of Aalborg.

The pension fund has bought two plots of land in a waterfront area of Nørresundby, a town just across the Limfjord from the North Jutland city of Aalborg.

The seller is the development partnership Stigsborg, which is jointly owned by the Municipality of Aalborg, the real estate arm of Danish pension fund PFA and developer A. Enggaard, the pension fund confirmed.

Lærernes Pension plans to build 21,000sqm of residential space on the plots, which border Stigsparken — a large park.

The planned investment in the land and the construction project adds up to more than half a billion Danish kroner, a spokesman for the pension fund confirmed.

The development, which is expected to be finished by the middle of 2022, will include two, three and four-room flats of between 50sqm and 120sqm, with all having access to outside spaces such as balconies, gardens and terraces, according to Stigsborg.

Henrik Walther Mogensen, Lærernes Pension’s finance director, said the pension fund was very pleased to be part of the Stigsborg area in Nørresundby — not least because of the “ambitious strategy for a sustainable district and the implementation of the UN’s global goals,” he said.

In the last few years, the pension fund has expanded its residential portfolio in Copenhagen, Aarhus and Aalborg.

PFA and A. Enggaard won a bid two in September 2017 to buy 51% of the Municipality of Aalborg’s planned Stigsborg waterfront development company, with the overall project spanning 49.4 hectares and an expected 400,000sqm of real estate space.