Danish pension funds enter unique public-private partnership JV

Three of Denmark"s biggest pension funds have joined forces to create a "one-stop shop" to help public authorities plan, build and finance construction projects, in a bid to invest as much as DKK5bn (€670m) in infrastructure and real estate via public-private partnerships (PPPs).

PKA, PensionDanmark and Sampension have signed an agreement with property administrator DEAS and Nordic contractor MT Højgaard to cooperate on future construction-related projects within PPPs, said PKA.

The agreement allows for investment of as much as DKK5bn in building PPP projects over the next few years.

Each project will be worth at least DKK50m, which means the investment framework could finance 50-100 new public projects, PensionDanmark said.

Torben Möger Pedersen, managing director of PensionDanmark, said: "We are in a position to enter into partnerships that will ensure the public sector gets better and cheaper solutions, we get a reasonable return and many new jobs will be created once the building work gets underway."

The cooperation between the three funds and two companies was the first in Denmark to combine financial power with building and facility management skills, he said.

He said it would provide a "one-stop shop" for public authorities with construction needs, giving them a single access point for services – from architectural to financing.

Möger Pedersen said the funds would now take the initiative and approach public authorities that had potential projects, rather than waiting for them to make the first move.

"The new joint venture clears the way for the PPP breakthrough people have been talking about for years," he said.