DENMARK - The DKK24bn (US$4.14bn) Danish Pension Fund for Engineers (DIP) has sold its DKK487.5m commercial property portfolio to Aberdeen Property Investors (API).
The acquired portfolio comprises seven office properties with total floor space of 40,000 square meters - and represents a net initial yield of 6%.
DIP chief executive officer Søren Kolbye Sørensen said: "Being a shareholder in the property fund instead of direct owner of fewer single properties makes strategic sense to DIP. This is because we get higher potential returns through Aberdeen's active management while also increasing the diversification of our exposure to property."
Sørensen added: "Looking forward, DIP's investment strategy will involve allocating 6-10% of total assets under management to property. We believe that property as an asset class in the future will ensure our members good pensions, also in the event of increasing inflation."
Aberdeen Property Investors Denmark chief executive Tonny Nielsen said: "The composition of the portfolio complements the existing investment strategy of the fund well in terms of size, type and regional focus."
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