DENMARK - Danish pension provider PensionDanmark has acquired commercial real estate let to other pension funds in Denmark, and plans to increase its property exposure significantly over the next three years.

PensionDanmark acquired five properties for DKK1bn (€134m), taking the Labour market pension fund's real estate holdings to DKK5.6bn in total.

Three of the buildings are let to industry-wide pension funds Finanssektorens Pensionskasse and Lærernes Pensionskasse, and trade association Forsikring & Pension.

The fourth office property bought in the same area - the Tuborg Syd area of Hellerup - is occupied by law firm Advokatfirmaet Horten.

The fifth building is located in Hjørring and is leased to the Ministry of Finance's Palaces and Properties Agency, having been redeveloped from a former Nestlé factory.

Soren Ulslev, head of property investments at PensionDanmark, said it was important to the pension fund that all five properties were of high quality, were in good locations and let to strong tenants on long leases.

The DKK84.1bn pension fund is planning to invest in more real estate over the next two to three years, with a view to increasing its real estate allocation from 6.3% to 10% of total assets under management.

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