COPENHAGEN, Sept 7 (Reuters) - Danish pension fund ATP has decided to enter the rental housing market with a 600 million Danish crowns ($97 mln) building project in Copenhagen, it said on Thursday.
The fund that handles mandatory pension savings for more than 5 million Danes will build 150 homes, a parking garage, a hotel and a fastfood restaurant in the Orestad neighbourhood.
“It’s a long-term investment where we can see some clear benefits and possibilities for good, long-term yields,” property investments chief Michael Nielsen said in a statement.
Danish pension funds have stepped up so-called alternative investments in recent years in search of better returns at a time of ultra-low interest rates.
ATP holds total assets worth 850 billion crowns, ranking it among the world’s top-20 and Europe’s top-four pension funds by size, according to British advisory firm Willis Towers Watson.
1 Danish crown = $0.1610 Reporting by Teis Jensen, editing by Terje Solsvik