Danish institution ATP Ejendomme has earmarked up to ¬500m to invest in international property over the next four years.
The money will be invested indirectly, spread across a range of risk profiles from core funds to opportunity funds.
ATP Ejendomme managing director Lars Frederiksen said: “Our idea is for a fund-of-funds strategy to build up our pan-European exposure.”
The move by the property arm of the Danish Labour Market Supplementary Pension scheme forms part of its push to increase its total property exposure from 3.4% to 5%. ATP’s property assets total ¬1.1bn as part of the institutions total holdings of ¬34bn. The increase by the end of 2005 will take its property portfolio to ¬2bn, with the majority expected to be invested outside Denmark.
“There are mainly two reasons to invest outside Denmark; firstly, we are looking for a geographical diversification to our Danish portfolio. Secondly, we are targeting a higher return outside Denmark to increase our overall return from property,” said Frederiksen.
The institution will be advised by Bacon & Woodrow and Richard Hunter of fund manager Hunters, which was taken over by Baring Houston & Saunders last week.
Frederiksen expected the first investment to take place by the end.
EGi News 12/09/01
