DENMARK – PensionDanmark today began building apartments in Måløv, near Copenhagen, that will be ready for occupation at the end of 2007.

By 2008 PensionDanmark, an industry-wide pension fund, will invest DKK800m (€107.3m) in building four different types of accommodation: two in Ørestad and one in Frederiksberg as well as the one in Måløv. All together they will account 400 flats totalling 44,000 sq metres.

The building work is part of PensionDanmark's property investment programme, which posted a return of 18.9% in 2005.

“Our building programme is intended to guarantee our ability to provide our members with a good return,” said Poul Hedegaard, the fund’s director of real state. “In addition, our members are given first refusal on the properties.”

He added: “Work on the three projects will run consecutively, that way technical solutions can be transferred from one to the next and costs can be reduced.”

Currently, real estate accounts for 6% of PensionDanmark’s portfolio.

“We started from zero three years ago and are building up a new portfolio,” said Hedegaard. “Our target is 8% and we are growing very fast. Our total balance will be doubled by 2010.”