Danish pension fund PKA and developer A Enggaard are to redevelop a former prison compound into a new residential district in the town of Albertslund.

The 160,000sqm Vridsløselille Prison is being sold by public-sector property firm Freja Ejendomme and could eventually house affordable residential space, communal facilities and “inviting urban and outdoor spaces”.

Jon Johnsen, chief executive of PKA, said: “Together with A Enggaard, we look forward to creating a cohesive district with a focus on community, sustainability and community life.”

Johnsen said Albertslund, which lies between Copenhagen and Roskilde, had been developing well in recent years, had lively business and cultural life, and was only half an hour from the centre of Copenhagen.

PKA and A Enggaard have worked together on previous large urban developments, in the Danish cities of Odense, Aarhus and Aalborg.

Vridsløselille Prison, which was closed in 2016, is a cultural landmark in Denmark, with its front facade having featured in the Danish comedy films about fictional criminals the Olsen Gang.

The value of the deal was not disclosed.

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