Danish labour-market pension fund PenSam has sold a residential development in Copenhagen, to Swedish property firm Heimstaden for DKK680m (€91m).

The development, which is not yet complete, is called Scherfigs Have and is located in the northeastern coastal area of the Danish capital.

PenSam, which owns the asset in partnership with developer Consort, sold the asset via its subsidiary PENCO to Heimstaden’s Danish subsdiary.

The project is being sold as a finished residential development, and is expected to be ready for occupiers in the fourth quarter of 2018, with the final transfer of the project to Heimstaden scheduled to take place in February 2019, PenSam said.

PenSam said the deal was part of its strategy of developing real estate in order to sell.

Carsten Gröhn, head of alternative investments at PenSam, said: “We have a number of residential projects around Denmark, of which some have been done with a view to selling them, and Scherfigsvej is one of those.”

Gröhn said the pension fund aimed to form mutually beneficial partnerships, which contribute to good pensions for its customers.

“This is the basis for this deal and for the cooperation with Consort on the construction.” he said.

Heimstaden said it was buying the asset in order to grow its business in Copenhagen. 

Magnus Nordholm, vice president at Heimstaden, said: “We are happy to continue our expansion in the Danish capital with another great project, and to offer many families a home in Copenhagen.”

The development has around 12,800sqm of space in total, consisting of 114 flats and 117 parking spaces in an underground carpark.

PenSam and Consort took possession of the plot in 2014, after the World Health Organisation moved from the offices it had occupied there since 1948.

The firms Sadolin & Albæk and Plesner advised PenSam and Consort in the deal, and Heimstaden was advised by Gorrissen Federspiel.

Meanwhile, Danish institution AP Pension has formed a joint venture with Finland’s largest pension fund Keva to build a hotel in northeastern Copenhagen in a deal it says is worth more than DKK500m.

When complete, the hotel — located in the Nordhavn district – will be run by operator Comwell as its first hotel in Copenhagen.

Peter Olsson, director of the commercial mutual pension fund’s property unit AP Ejendomme, said: “At AP Pension, we have a clear strategy of investing in projects in their early development stages, so we can optimise our return as much as possible.

“At the same time we want to contribute by making a difference to the local area we are building in,” he said, adding that the Nordhavn project met both these criteria.

The Danish firm KPC will be the turnkey contractor for the project.

The hotel will have 493 rooms and 18 conference rooms.

Henrik Hoffmann development director at KPC said there was a lot of construction activity in the Nordhavn area currently, with a new local metro station in the process of being built.