PensionDanmark has invested in a retail and residential building in Lyngby, to the north of Danish capital Copenhagen.
The DKK222bn (€29.8bn) pension fund did not disclose the price of the deal.
The deal involved the purchase of 4,200sqm of space from turnkey contractor KPC, along with long-term leases.
Torben Möger Pedersen, chief executive of PensionDanmark, said: “This is a very well-located property with retail areas on the ground floor and a basement car park that PensionDanmark is buying, and there will be homes built on the upper floors.”
He said the property would be rented out on long-term irrevocable leases, so the pension fund could look forward to a “solid and stable return for many years for the benefit of our members”.
KPC has agreed to sell the property on completion of the development, which is expected to happen in 2019.
The property will be leased by retail group Dansk Supermarked Ejendomme with an operator contract with Q-Park for the carpark, while the residential units will be leased to public housing association Lyngby Almene Boligselskab.