The PFA and Industriens Pension partnership has invested DKK600m (€80.5m) in 18 residential properties in Jutland in its first year.

In February last year, the two large Danish pension funds join forces with privately-held property firm Thylander Group, to invest DKK1bn in residential property in Denmark by 2019.

The pension funds invest the money via a new investment fund set up by Thylander, called Danske Boligejendomme (Danish Residential Properties).

The aim was to invest in residential property in Denmark’s “growth cities”, not including the country’s two largest cities of Copenhagen and Aarhus.

Peter Frische, head of real estate investment at Industriens Pension, said: “We see significant potential in residential investments in a long list of Danish growth cities, which are experiencing rising populations and good economic growth.

“The process of finding suitable housing properties has gone really well, and the fund is now looking at properties in a number of cities throughout the country,” he said.

Michael Bruhn, head of real estate at PFA, said that as well as creating a good return for its pension customers, the new fund’s investments could support continued development in the targeted areas of Denmark.

“PFA’s commitment to Danske Boligejendomme is part of our strategy of investing more in residential properties across the country,” he said.

The new investments include 509 homes for rent and a smaller number of commercial rental properties.

So far investments had been made in Fredericia, Esbjerg, Viborg, Vejle, Kolding, Horsens and Holstebro, and several other towns in both Jutland and Zealand were being considered, PFA said.