DENMARK - PensionDanmark has bought a commercial property in the country's capital Copenhagen for DKK290m (€39m).

Karsten Withington Brink, head of real estate at PensionDanmark, praised the property, which is currently let to two government agencies.

"This is a high-quality property, which is perfectly situated, and one where the square meterage is utilised well," he said. "Apart from this, with the two government agencies, we have got stable tenants on long-term leases, so the property fits perfectly into our real estate portfolio."

The property, in the former industrial district of Valby, consists of two newly renovated buildings and is leased to the Danish Competition Council and the Property Agency.

Withington Brink said the type of property investment was particularly important at a time of historically low interest rates and turbulence on financial markets, as it ensured a stable return for scheme members.

"So it is our strategy to invest more than DKK5bn more in both existing and new commercial and residential property in the next five years," he said.

The bulk of this new investment would probably be in the capital city region, he added.

In all, PensionDanmark has DKK8.8bn invested in Danish commercial and residential property, or 7% of total assets. It aims to increase this proportion to 10% by 2015.