DENMARK – The e20.5bn PFA pension fund has agreed to buy the Copenhagen Radiohuset – the home of Danish broadcasting – in a deal for an undisclosed sum from Danish property company, Sjaelsø Gruppen.

The agreement includes the development of an area of approximately 12,000 square meters adjacent to the existing 28,000 square meters already occupied by the Radiohuset.

The building is currently used by Danmarks Radio, although the broadcaster is moving premises to be replaced in the Radiohuset by the Danish Royal Academy of Music, which will take over the lease on a 25-year basis.

As a result, PFA says it is ensured of a long-term return on its investment with the Danish State effectively acting as the tenant. In its calculation of the potential return, PFA says it is comparable to that of an allocation to bonds.