In 2020 PFA estimates to have property investments worth DKK 60 billion (EUR 8.07 billion), a big jump from the current DKK 41 billion (EUR 5.52 billion).
And PFA isn’t the only pension fund to strengthen it’s budget for property purchases in the years to come, when contributions are expected to keep coming into the pension funds.
The ten largest Danish pension funds own properties worth more than DKK 200 billion (EUR 27 billion). Within three to five years they’re planning to keep purchasing for over DKK 60 billion (EUR 8.07 billion) according to a survey conducted by Estate Media.
The survey includes properties owned directly or indirectly at in Denmark and abroad, but not any capital guarantees to finance.
For example, Danica Pension estimates that the pension company will invest another DKK 5 billion (EUR 628M), from the current DKK 26.8 billion (EUR 3.61 billion) to a a portfolio of DKK 31.8 billion (EUR 4.28 billion) in 2020, while ATP will go from having DKK 34.5 billion (EUR 4.64 billion) to having invested DKK 45 billion (EUR 6.05 billion) in 2020. Some of the investments are already underway.
All respondents emphasizes that the planned increases in the portfolios depends on the available properties that meet targets for returns and the individual strategies.
Danish Pension Funds to Invest Heavily in Real Estate in the Years to Come
Denmark —
The ten largest Danish pension funds own properties worth more than DKK 200 billion (EUR 27 billion). Within three to five years they’re planning to keep purchasing for over DKK 60 billion (EUR 8.07 billion) according to a survey conducted by Estate Media.
2017-02-22