Folksam is to boost its real estate portfolio by SEK10bn (€1.06bn) over the next five years.
The Swedish insurance and pension provider is looking to increase its investment in the sector by 55% from its current level of SEK18bn.
Folksam also said it is carrying out a feasibility study to reorganise its property division, which will be brought under the group’s asset management arm. Folksam’s investment in real estate sits alongside its bonds and alternative assets divisions.
Juha Hartomaa, investor relations director, told IP Real Estate that outsourcing management of Folksam’s portfolio would allow it to concentrate more on investment.
Folksam’s real estate investments, he added, have remained focused largely on the domestic market, with some interest in Finland.
The increase in investment would see more investments made in the office, logistics and retail sectors.
Real estate accounted for around 4% of the group’s SEK330bn in total assets at the end of the third quarter last year.
As reported late last year, the chairman of Folksam Liv is to step down because of possible conflicts of interest due to his chairmanship of major Swedish bank Swedbank.
Anders Sundström will resign as chairman of Folksam Liv – the main life-insurance subsidiary of the Folksam group – at the company’s next annual general meeting in April.