Danish pension funds will invest DKK 60 billion in real estate through to 2020

The 10 biggest pension funds in Denmark own real estate worth more than DKK 200 billion (approx. USD 28.3 billion), and are planning further acquisitions worth another DKK 60 billion within three to five years, according to a survey.

The daily news flow reflects that pension funds are eager property investors.

A recent poll brought by Danish Estate Magasin now shows that the 10 biggest pension funds in Denmark plan to invest more than DKK 60 billion through to 2020.

Danica Pension, for one, expects to invest another DKK 5 billion in addition to its current DKK 26.8 billion, while ATP will up its investments from DKK 34.5 billion to DKK 45 billion in 2020.

"We had previously allocated 5 percent of the balance to real estate, but with the decreasing returns on bonds, we need 12-15 percent, and with the balance in such rapid growth, we need to spend larger sums on acquisitions," says Michael Bruhn, Chief Executive at PFA Real Estate, to Estate Magasin.

English Edit: Marie Honoré

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