​PFA to boost foreign real estate exposure, signs JV with Korea's POBA

Danish pension fund PFA is to further tilt its real estate portfolio towards international markets and has revealed that its partnership with South Korea counterpart POBA could see DKK10bn (€1.32bn) invested in alternative property assets.

The DKK576bn institution said the foreign portion of its DKK57bn real estate porfolio, which currently stands at 45%, would expand at a faster rate than the domestic share.

“We are looking more towards foreign countries in the next few years, including both Europe, Asia and the USA,” said CEO Allan Polack.

Last month, PFA signed a partnership deal with South Korean pension fund POBA to invest in data centres, self-storage and other niche real estate sectors.

A PFA spokesman confirmed the deal and said the two pension funds were targeting a maximum investment target of DKK10bn, including potential debt financing.

Han Gyeong-Ho, CEO of POBA, said: “We will explore high quality investment opportunities with the US and European pension funds.”

The partnership with PFA follows a similar deal between POBA and California State Teachers’ Retirement System earlier this year.

According to its website, POBA recently visited investment managers in Europe, including Allianz Real Estate, Patrizia, JP Morgan Asset Management, PGIM Real Estate and AXA Investment Managers–Real Assets.

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