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Denmark's PFA snaps up 13-property Copenhagen portfolio

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  • Denmark's PFA snaps up 13-property Copenhagen portfolio

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DENMARK – PFA, Denmark's largest commercial pension fund, has bought a portfolio of 13 key properties in Copenhagen with a total of 36,000sqm of commercial and residential space, from financial services group Nykredit.

The DKK370bn (€49.6bn) pension fund will place the properties in a newly created real estate fund as part of a new partnership with Danish private equity real estate firm Thylander Gruppen.

The partnership is aimed at launching a further fund to invest in similar properties, PFA said.

Michael Bruhn, director of PFA Ejendomme (PFA Properties), said: "A property portfolio like this is rarely seen in the market, and we are pleased to have acquired [them] in cooperation with Thylander Gruppen."

He said the portfolio fit in well with PFA's real estate portfolio.

"Several of the properties will be developed, and we see great potential in the portfolio, which is expected to produce a good, stable return for PFA," he said.

The portfolio of 13 buildings currently used as offices, as well as retail and residential units – called the Absalon Portfolio – will be transferred to PFA from Nykredit on 1 September.

When the new fund is set up, it will establish a partnership with Thylander Gruppen, which will undertake the project development of the buildings.

The new fund will be closed-end with PFA as sole owner.

But the Thylander Group and PFA will expand their partnership by launching another fund, which will aim to buy similar properties in greater Copenhagen.

The parties involved declined to disclose the sale price.

Advisers for the buyers were Bech Bruun, Sadolin & Albæk, Lars Gitz Architects and Grontmij, while Gorrissen Federspiel and Catella advised the sellers.

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  • QN-2546

    Asset class: Real Estate Equity Fund (non listed).
    Asset region: Europe.
    Size: Total CHF 600m, approx. CHF 100-300m per fund investment.
    Closing date: 2019-06-28.

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