PensionDanmark is investing DKK175m (€23.5m) in a commercial property in Copenhagen as its plans to deploy DKK2bn in real estate every year.
It is buying the government-let asset from MP Pension, the Danish labour-market pension fund for academics run by Unipension, soon after selling a large residential portfolio last month.
The building in the Østerbro district of the Danish capital is currently leased by the Danish Working Environment Authority (Arbejdstilsynet), and contains 14,273sqm of space.
Torben Möger Pedersen, PensionDanmark’s chief executive, said: “We see this as a good real estate investment in an attractive location close to the S-train (urban rail network) and the coming metro station on the Cityring.”
He said the pension fund had a very solid tenant in the Danish Working Environment Authority – and therefore the state – so the investment would give scheme members a good and stable return.
PensionDanmark said, since it sold its entire residential property portfolio in June, it now had just under DKK10bn in overall real estate investments.
In the next few years, the fund said it expected to make new investments in residential as well as commercial property of DKK2bn a year.
PensionDanmark is the developer of six large commercial construction projects, either alone or in cooperation with other investors.
These include the Alfa Laval headquarters in Ålborg, Semco Maritime in Esbjerg, Nordea Bank Danmark in Ørestaden, NCC in Gladsaxe and, soon, MTH in Søborg, as well as the new psychiatric hospital in Vejle.
Its next big residential project will be the construction on Islands Brygge in Copenhagen, which will include 550 new homes.