PensionDanmark is investing DKK1.5bn (€200m) to build 45,000sqm of residential properties in a proposed new development south of Copenhagen in the town of Køge.
The DKK235.9bn Danish pension fund said it had agreed to buy a section of land between Køge and the beach Søndre Strand from the company in charge of developing the area, Køge Kyst, with plans to build a new, sustainable urban zone.
Torben Möger Pedersen, PensionDanmark chief executive, said: “I expect a lot from this project, where the solid population growth in Køge provides demand for attractive urban spaces with value-adding housing and commercial leases.
“PensionDanmark will develop sustainable housing according to our new housing platform, so that we get attractive housing with satisfied residents and through this, good returns for our members as well.”
The development will include about 500 owner-occupied and rented homes and other amenities such as cafés and small shops.
Pension Danmark said the area will be sustainable in terms of environmentally, economically and socially.
The development will take the form of five blocks, with 2,000sqm of the total space being created to be shops and cafés. It will be DGNB sustainability certified in the gold category, and PensionDanmark and Køge Kyst will jointly chose the architects to design the property.
Enemærke & Petersen will be the contractor for the buildings, which will be three to seven storeys high, and up to nine storeys high in some parts.
PensionDanmark said the land will need cleansing by Køge Kyst after previous industrial use, which left the ground polluted, before building work can start. Construction is intended to start in two to four years.
Anker Boye, chair of the supervisory board of Køge Kyst, said: “Køge Kyst is based on a vision of sustainability, and with this agreement I believe we will have taken our greatest step towards a common goal of future-proof and green urban development.
“We have got a partner who will not only build housing but also want to develop the housing area.”