PFA is to transform the property on the corner of Gullfossgade and Artillerivej on Islands Brygge, Copenhagen, into a hotel. The total investment is around DKK 200 million (EUR 26.9 million), the pension fund writes in a press release.

Once the remodelling is done, Danish hotel chain Guldsmeden Hotels will move in as the operator of the hotel, which will have 7,159 square meters of space spread over six floors, and will consist of about 200 rooms. The property will be managed by Newsec Datea.

"The Islands Brygge area has undergone incredible development over the past 10 to 15 years, and it is now a very attractive neighborhood close to green, recreational areas as well as water, but it is also located in the epicenter of the vibrant life of the city," says Michael Bruhn, CEO of PFA Real Estate, in the statement.

"That is a good foundation for continued growth and improvement in the area, and this will be reflected in developments in the property market in the future. Furthermore, Islands Brygge will be an increasingly attractive place to operate different types of business activities," Bruhn says.

The work to convert the building to a hotel with a restaurant is expected to begin in spring 2018, and the hotel will be ready for its first guests in 2019. The building was recently approved in an addendum to the local plan for the area.

The newly-opened hotel will be named "Bryggen Guldsmeden" and will be the hotel chain’s 10th location. Guldsmeden Hotels also has hotels in Oslo, Reykjavik, Menton in southern France, and five other hotels in Copenhagen, one in Aarhus, and one in Berlin, which will open before the end of 2017.

The property at Gullfossgade/Artillerivej is part of PFA's acquisition of the Property Company New York Amager – now PFA Islands Brygge – which PFA took over in January 2017. PFA Islands Brygge ApS also owns an 8,988 square meter office property on Artillerivej, which is fully rented out.