PensionDanmark is investing DKK300m (€40.3m) in an Ørestad housing development.
The 9,100sqm scheme will be developed by KPC.
It will include 28 houses and 67 apartments, with completion expected in late 2018.
Construction is due to start next March.
Torben Pedersen Möger, chief executive of the labour market fund, said the scheme was attractive due to its good location in Ørestad South.
Expected population growth in Copenhagen, should, he said, result in “great interest” in the homes.
PensionDanmark members can look forward to a good return, he added.
The land for the scheme has been sold by the By & Havn development firm.
