PKA, which administers three Danish labour-market pension schemes, is investing up to DKK2.4bn (€322m) in debt for the Carlsberg City project in Copenhagen.

The pensions firm is making the money available as a loan facility to the redevelopment of the former Carlsberg brewery site in western Copenhagen. 

The loan, it said, would provide financing for a further 125,000m2 of space in the development.

The new buildings to be erected over the next few years will consist of residential units, it said, but would also contain space for commercial and retail business and around 400 parking spaces.

Michael Nellemann Pedersen, investment director at PKA, said: “PKA is a significant investor on the Danish residential property market, including the Copenhagen market, where we have made our mark in the last few years with buildings in Nordhavn, Teglholmen and Islands Brygge.”

PKA was, he said, very happy to have sealed the deal with Carlsberg City, which gave it the opportunity to be involved in the continuing development of an historic district.

The financing facility would contribute to a good, safe return to PKA member’s pensions, he added.

PKA said that when the entire Carlsberg City development was complete, it would consist of around 600,000 sq m of space.

The loan facility it had agreed to extend would mean that all development within the project, which has planning permission, would now be financed once underway.

The pensions company said that its involvement was limited to being a source of financing, while the Carlsberg City development company would handle the development itself, alongh with the sale of buildings.

Carnegie Investment Bank and Catella Corporate Finance acted as financial advisers for Carlsberg City.