PensionDanmark has 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 €107.3 million (DKK 800 million) 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 m².
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 funds 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 PensionDanmarks 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."