Danish pension fund AP Pension's real estate portfolio was worth EUR 67 million (DKK 500 million) more at the end of 2019 than at the end of 2018, primarily due to increases in value, the year-end report for the company's property business, AP Ejendomme, shows.
The value of the existing portfolio now totals EUR 615 million (DKK 4.6 billion), and a further EUR 214 million (DKK 1.6 billion) is under construction, giving a total value of EUR 830 million (DKK 6.2 billion). This higher value reflects the fact that the average minimum return requirement has been lowered from 5.8 to 5.3 percent.
It is the first time that AP Ejendomme has released a year-end report since its purchase of Skandia's Danish business.
Skandia did not have property in Denmark, but the extra pension funds will have an effect on investments, says head of real estate Peter Olsson.
There is also a clear goal to grow significantly over the coming years.
"Over the next few years, our portfolio will approach EUR 2 billion (DKK 15 billion)," explains Olsson in an interview with EjendomsWatch.
He highlights that this should happen within the course of five years.
This post originally appeared on AM Watch.
