Germany’s Bayerische Versorgungskammer (BVK) has agreed a €200m loan with residential property company ABG Frankfurt Holding, as the country’s largest pension fund grows its loan book.

The €66bn BVK, which manages assets on behalf of a dozen public and industry-wide funds, noted the loan to ABG Frankfurt was its second such standalone agreement with a property company, following last year’s €150m deal with Gewofag.

André Heimrich, head of asset management at the €66bn BVK, said it planned to expand its loan book in future.

“We are able to offer not only large-scale financing but also financing over a long time horizon – granting us a competitive advantage,” Heimrich added.

ABG Frankfurt’s largest shareholder is the city of Frankfurt, and it is property manager for around 51,000 flats.

The BVK’s joint statement with the company said the loan would allow it to support the development of properties in the Frankfurt region, but it was unclear whether the loan had been earmarked for a specific project or if its proceeds could be used to fund construction and renovation.

BVK has previously worked with DekaBank to extend loans, lending to public utility Münchener Stadtwerke.

It has also worked with DekaBank to provide a €60m finance facility for the purchase of wind farms in Germany.