EUROPE - ATP and PensionDanmark have teamed up to buy two major commercial property developments in a DKK2.1bn (€283m) deal.

The pension funds said they had formed a consortium with government-owned corporation CPH City & Port Development to buy the 45,000 square meter UN City development, as well as an adjoining 60,000 square meter office tower project. 

The seller was CPH City & Port Development.

Lars Rohde, director at ATP, said: "The investment in the UN City conforms well to our real estate investment strategy. This is the most modern office building in a fantastic location, and the property is leased to the UN on good, long leases."

The focus on sustainability was a big plus for ATP as well, he said.

"We are also pleased to participate in the development of new office buildings on Langelinie and Marmormolen, which represent some of the best locations in Copenhagen," he said. 

The parties said this was the biggest property deal of the year. ATP and PensionDanmark each hold a 45.75% share in the consortium, while CPH City & Port has the remaining 8.5%.

The UN City (FN Byen) development is on Marmormolen (Marble Pier), a new 160,000 square meter waterfront development close to central Copenhagen. 

One of the two planned office towers will be sited at the end of Marmormolen, while the other will stand at the end of harbour wall Langelinie. 

The towers will be linked by a high-level bridge structure over the water between them. 

PensionDanmark's managing director Torben Möger Pedersen said the investment would give its members a good and stable return.

"That is important in a time of unrest on the financial markets and record low bond yields," he said. 

He also pointed out that the construction of the buildings would provide employment for many hundreds of construction workers over several years.

Construction of the UN City building is already well underway, with occupation expected to begin at the start of 2013. 

The consortium will lease the 45,000 square meters of space plus 6,000 square meters of basement space to the Danish state, with a number of UN organisations as users.

It is the first Scandinavian building to be LEED certified. It was designed by 3XN Architects and built by E Pihl & Søn, the parties said.

Construction of the two office towers will start once leasing agreements are in place, they said. 

The transaction includes the two sites as well as building rights.

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