Industriens Pension wants to double and diversify real estate portfolio
Historically, the Danish pension fund serving industrial workers has held relatively few property assets, but real estate chief Søren Tang Kristensen is in full swing changing this. The firm prefers two segments with varying strategy and geographic focus.
BY NILS-OLE HEGGLAND, FREELANCE JOURNALIST, TRANSLATED BY DANIEL FRANK CHRISTENSEN
Like many other pension sector player, Danish Industriens Pension wants to dramatically expand its holdings of real estate assets to serve as a stable counterweight to fluctuating equities and bonds still carrying low yields.
Farmland has performed well in an otherwise horrendous year for risky assets. Institutional investors generally search for uncorrelated return streams, potential green benefits and inflation hedges, and while the asset class ticks these boxes, it also comes with significant risks.
PFA’s real estate department is changing its strategy in expectation of more interest rate increases and recession, says the head of Nordic real estate, while three projects are being paused as ”it didn’t make sense to keep going.”
New opportunities to allocate more to riskier assets mean changes are being made at ATP. A restructuring of the central IT system has been the toughest nut to crack in the restructuring, which has been described as the most comprehensive change in the pension giant’s 60-year history.