Danica Pension has mandated Aberdeen Asset Management to run a portfolio of 107 properties in Denmark.
The pensions subsidiary of Danske Bank chose the investment manager as it looks to outsources the strategic management of nearly half of its real estate portfolio.
Aberdeen said it would manage the €1.3bn residential and commercial property portfolio from February next year.
The properties involved are all in the residential and office sectors, with Danica Pension deciding to carry on managing its retail property assets — mainly shopping centres — in-house.
Tonny Nielsen, country manager and head of strategic projects — property, at Aberdeen, said: “Our aim will be to capitalise on our experience and expertise of the Danish property market to create value for Danica Pension investors.”
He said the firm looked forward to becoming an extension of Danica Pension’s team, “driving value through its property portfolio.”
With a portfolio of around €3.3bn, Danica Pension is one of the country’s biggest property owners.
A spokesman for Danica Pension explained that over the past year, the pension fund’s real estate investment had grown, leaving it with the choice of upgrading its own internal management team – or outsourcing.
Aberdeen has around 70 employees to work on the strategic management of assets, whereas Danica Pension had only two, he said.
Aberdeen would try to improve overall return on investment, he said.
However, the spokesman said Danica Pension had decided to retain the strategic management of its shopping centre and other retail assets in-house, adding that there were no similar plans to outsource the segment in the future.
Aberdeen said it would also be managing around €5m of property developments for Danica Pension once completed.
The aim of the mandate, it said, would be to “optimise the value of the property portfolio through active management, while the current property administrator will continue to be responsible for letting and administration.”
Danica Pension’s spokesman confirmed that Danish property management firm, Datea would continue the logistical management of its properties.
Aberdeen said the mandate win takes its total real estate under management in Denmark to €3.1bn.