PensionDanmark, PKA and Sampension are investing DKK430m (€57.6m) jointly in a public-private partnership (PPP) deal to build and operate a new psychiatric hospital in the city of Vejle.

The project is the first to be undertaken by the consortium of three labour market pension funds, Nordic contractor MT Højgaard and property administrator DEAS since the firms announced a partnership in 2012.

Torben Möger Pedersen, managing director at PensionDanmark, said: “The investment will give members a good and stable return for many years and at the same time ensure patients and staff get high-quality physical conditions.”

The five businesses said in 2012 they were setting up a “one-stop shop” to help public authorities plan, build and finance construction projects and envisaged investing up to DKK5bn together in infrastructure and real estate PPPs.

PensionDanmark said the consortium was chosen by the Region of Southern Denmark municipality in what would be the first public-private hospital construction project in Denmark, and one of the country’s biggest standalone PPP projects of any kind.

The three pension funds will provide financing while MT Højgaard will be responsible for construction and operation for a 25-year period in conjunction with DEAS. Work on the new hospital, which will be connected to Vejle hospital via a 200m tunnel, will start this summer. 

MT Højgaard said the new facility would have a total value of about DKK930m.