Danish pension fund to increase investments in Asia
The DKK 576 billion ($84 billion) PFA Pension, the largest privately owned life insurance company in Denmark, is planning to double its allocation to Asian real estate, according to Asian Investor.
The pension plan is seeking to invest another $1 billion in brick-and-mortar assets in the region in the coming years.
PFA is an active global property investor, with investments in Denmark, the rest of Europe, the United States and Asia. In 2018, the transaction volume on the Asian market hit a record high, according to a 2018 annual financial report. A heavy increase in the demand on the rental market combined with low vacancy rates signaled rising rent levels and generated solid returns for almost all sectors within the region.
In 2018, PFA’s total property portfolio value grew by DKK 9.3 billion ($1.3 billion) to DKK 53.1 billion ($7.8 billion) at the end of the year.
At the end of 2018, real estate represented 11 percent of PFA’s total investm