PFA Bostad will invest in existing rental apartments in selected regional cities and municipalities with stable growth and favorable demographics surrounding the major cities in Sweden. The aim is to build a portfolio of at least 500 apartments in each cluster in order to secure efficient management of the portfolio and to benefit from economies of scale.

An important pillar of PFA Bostad’s investment strategy is the focus on ESG. This is an integrated part of our mindset as well as the investment and management processes. The company seeks to create value through sustainable and long-term investments rather than maximizing short-term profits.

“We are thrilled to finally be able to enter the Swedish residential market. It is a market that shares many of the same characteristics and trends as we see in Denmark. However, until now the lack of local presence and knowledge have made it difficult to invest in Sweden. That is why we are pleased to have this partnership agreement with Obligo,” says Mikael Fogemann, Head of Nordic Real Estate at PFA.

Obligo Real Estate will act as the manager of PFA Bostad. Obligo is a Nordic asset and investment manager with an established institutional investor platform. As of end of 2019, Obligo had SEK 6.5 billion in real estate assets under management, of which approximately 85 percent was in Sweden. The current portfolio consists of primarily office assets. Even though the current portfolio does not include any residentials, Obligo has significant experience and a strong residential track record.

“During the period 2005 to 2014 we built up the residential property management company, Graflunds. In 2014 the remaining residential portfolio we managed, as well as the property management company was divested. Since then our asset management focus has been related to other asset classes primarily office. We are excited and humble to once again enter into the Swedish residential market together with a professional and well-reputed company as PFA”, says Morten Wettergreen, Head of Asset Management in Sweden at Obligo.

PFA is Denmark’s largest commercial pension company, managing customer funds in excess of DKK 565 billion and has 1.3 million pension customers.