DENMARK - PensionDanmark is investing DKK200m (€27m) in a residential property development in Jutland and expects to put between DKK1bn and DKK2bn annually into real estate over the next five years.
The DKK110bn labour market pension fund plans to build 111 new apartments in Vejle harbour on land it bought from the town council in December.
The development will provide 11,000 square meters of residential space and is expected to be ready for occupation in the first six months of 2013.
Søren Ulslev, director of real estate, said: "We are deliberately targeting high quality and good locations in our property investments so we can ensure a good, stable return for members. The investment in Vejle lives up to all of this."
The construction manager for the project in Vejle is E. Pihl and Son.
Building work will begin in December, and Dan-Ejendomme will act as administrator once the apartments are ready for rental.
PensionDanmark said its own scheme members would have priority as potential tenants.
Outlining its property and infrastructure investment plans, the pension fund said:
"PensionDanmark expects to invest DKK1bn to DKK2bn a year in new residential, business and retail property over the next five years, and a corresponding amount in infrastructure and energy installations."
In all, it currently has more than DKK8bn invested in real estate, it said.
Last week, PensionDanmark announced the acquisition of the law court building in the town of Nykøbing Falster from real estate company Vestensborg Allé, which is owned by the Nobel family.
Ulslev said the investment was attractive because the property was in a good location, included a long lease with a solid tenant in the form of the Danish state and rental income was linked to inflation.
The building is leased to the law court until 2024, PensionDanmark said.
The pension fund aims to invest around 20% of assets in inflation-protected assets such as property, infrastructure and sustainable energy, Ulslev said.