Danish pension fund Pædagogernes Pension (PBU) is selling the rest of its residential property portfolio of directly owned assets to Storebrand Nordic Real Estate Fund II - then investing in that fund.

The DKK100bn (€13.4bn) pension fund for early childhood teachers said it has agreed to sell nine residential properties in Denmark to the fund, and that in connection with the sale, it had also become an investor in the fund.

Sune Schackenfeldt, CEO of the Copenhagen-based pension fund, said: “We are very satisfied to have found a buyer who we trust will continue responsible ownership and take good care of both the properties and the tenants - while ensuring an attractive return for our members.”

Johannes Bill Ladegaard, the pension fund’s CIO, told IPE Real Assets that this latest transaction - involving what was PBU’s entire residential property portfolio of directly owned assets - had a total value exceeding DKK800m and included seven properties with a total of 442 rental units.

This transaction comes after a PBU deal in the summer to sell two directly owned Danish residential properties to the Storebrand fund for around DKK500m.

PBU has invested only a proportion of the total DKK1.3bn proceeds from the sales back into the Storebrand fund, he said.

“We plan to invest the rest of the proceeds in different global indirect real estate funds over time,” he said.

As for the remainder of the pension fund’s property investments, he said: “PBU still holds real estate assets worth approximately DKK5.2bn and does not expect to carry out further portfolio sales. 

“The sale is part of a strategic adjustment of our property portfolio, shifting from directly owned residential properties towards a globally diversified real estate portfolio over time,” he said.

PBU said Storebrand had a strong focus on sustainability and responsible investments, which was in line with the pension fund’s values and requirements for a future owner of the properties.

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