DENMARK - PKA and Topdanmark are joining forces to buy a 45,000 square meter residential construction project in Copenhagen for around DKK1bn (€135m) from Nordic property developer Sjælsø.

The two pension companies will each own a 50% share in the 'Udsigten' project, in the harbour-side location of Margretheholm.

Nikolaj Stampe, head of real estate at PKA, said: "Both PKA and Topdanmark are pleased to have the opportunity to invest in attractive properties in unique areas in Copenhagen.

"The demand for high-quality apartments, especially in Copenhagen, is increasing significantly during these years, and, therefore, we as investors have great expectations of this investment."

Stampe said 20% of PKA's property investments had been made in the just under three years, adding that the institution had no plans to slow the pace of activity.

Birger Grubbe, director at insurance and pensions group Topdanmark, said: "Margretheholm is an attractive residential area, not least because of its proximity to the sea as well as the centre of Copenhagen."

The development has been designed by architects Vandkunsten, and will include 458 homes, as well as a 125 square meters commercial lease.

It will be divided into six blocks with seven floors including penthouse.

The blocks will be completed one by one between 2014 and 2015.

Apartments will be let gradually as they are completed.

Sjælsø said the parties had agreed to determine the final price of the project when construction was completed and the apartments had been let.

The final sales price was expected to be DKK1bn to DKK1.1bn, it said.

The financing of the construction has been arranged between the buyers and Sjælsø.