​P+ joins AP Pension, Akademiker in joint bid for Danish defence project

Danish pension fund P+ today became the third of its peers to join a joint pension fund public-private partnership (PPP) bid for a contract to build new Danish army barracks.

The bid project was initiated last month by AP Pension, which was joined at the end of April by AkademikerPension, and P+ now says it will match the three-digit million investment sum in Danish kroner being offered by each of the other two funds.

Like many European states, Denmark is ramping up its defence capabilities to counter heightened geopolitical threats.

Earlier this year, the Danish government allocated an extra DKK50bn (€6.7bn) to the nation’s armed forces for 2025 and 2026, on top of nearly DKK200bn already allocated up to 2033, with the prime minister citing Russian aggression and saying defence procurement had to happen fast.

Kåre Hahn Michelsen, chief executive officer of the DKK178bn P+ pension fund for academics, said: “We have long been open to new investment opportunities that can support the Danish armed forces and at the same time deliver a reasonable return to our members.”

“Therefore, we see it as a completely obvious investment opportunity that we can hopefully help build new barracks,” he added.

Hahn Michelsen said P+ currently had 24 investments in the European defence industry, and that the Danish armed forces and the Ministry of Defence’s agencies were some of the largest employers among its members.

At the end of April, AkademikerPension announced it was joining the bid, describing the project to build the new army accommodation in Denmark, conceived by AP Pension, as “too good not to join”.

Jens Munch Holst, CEO of AkademikerPension, said: “I have repeatedly said that we would like to help build up the Danish armed forces, but that we lacked concrete projects to invest in.”

“AP Pension’s project is a very solid framework, and we hope to have a constructive dialogue with the responsible politicians,” he continued.

Bo Normann Rasmussen, CEO of commercial pension provider AP Pension, said a week ago on LinkedIn that he was pleased AkademikerPension was joining the collaborative bid.

“We believe that the model we have presented can make a big difference, and by establishing a public-private partnership with full transparency, we can ensure that the economy is fair and equitable for all parties,” he noted.

Hahn Michelsen said the project struck the right balance between the use of public and private resources.

“As private investors, we can assume the risks associated with building, operating and maintaining the barracks. In return, the state will eventually take over the barracks at a pre-agreed price, which ensures a stable return for our members’ pensions,” he said.

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