Sampension is investing a “three-digit million” sum in kroner in a project to build 68 new flats in Køge — a town 39km south of Copenhagen, which it says is set for steep population growth.

The DKK266bn (€35.7bn) Danish labour-market pension fund said the property to be built is on the town’s seafront and the resulting two to four-room apartments will be rented out initially, but are divided to make it possible to sell them eventually as condominiums.

Hasse Jørgensen, Sampension’s chief executive, said: “The demand for housing in Køge is steadily rising and we expect it to grow even further with the opening of the new train connection to Copenhagen and with the new super hospital, which will create more than 4,000 jobs.”

The contractor for the project is property developer Calum, and Sampension will only take ownership of the property once construction is completed, which the pension fund said meant it would not be exposed to any construction risk.

“The property market in Copenhagen has become impossible for many to get close to,” Jørgensen said.

For this reason, the pension fund believed municipalities such as Køge and Roskilde would see strong population growth in the next few years, he said.

“The project in Køge is not the only one we are going to do outside Copenhagen this year,” he said.

The new homes will be spread over seven floors, vary in size from 76sqm to 109sqm, and the development will include a communal garden for residents at its centre.

Building is expected to be completed by 2020.

Sampension already owns 29 residential properties located throughout Denmark.