Pensam, a Danish pension company, and real estate investor and fund manager Cromwell Property Group, have launched a partnership to invest in light-industrial and logistics real estate in Denmark and Sweden.
The transaction will combine the two businesses into an €8 bn pan-European real estate management platform.
Cromwell will invest an initial €200 mln for Pensam over three years. The strategy will target light-industrial and logistics properties of various size, age, income profile and quality, in established logistics locations in Denmark and Sweden. The strategy has a core plus risk/return profile and the target is to create a portfolio of sustainable logistics properties through active asset management, leveraging Cromwell’s strong local presence and expertise.
Pensam is a labour market pension fund managing occupational pension schemes for people within eldercare, cleaning, technical service and pedagogical care in Danish municipalities, regions and private companies. PenSam manages DKK180 bn (€24 bn) of investments and places a strong emphasis on responsible investments, including the green transition.
The investment programme has a strategic focus on megatrends, including deglobalisation, sustainability and ecommerce, which are benefiting the Danish and Swedish logistics markets.
Jeppe Starup, head of private capital and real assets at Pensam, said: 'This strategy and co-operation with Cromwell, who have impressed with their high quality in investment management and strong ESG profile, will strengthen our portfolio with superior properties in strategic locations. The strategy is in line with our sustainability profile and will contribute to ensuring a stable and attractive return for our 500,000 pension customers.'
Pontus Flemme Gärdsell, head of Northern Europe at Cromwell Property Group, said: 'We are delighted to be partnering with Pensam. This is an opportune time to be investing in the Danish and Swedish logistics markets, as there is strong occupier demand and a shortage of modern, sustainable space. Entry pricing is attractive, and the investment market is established and liquid.'
In May, Cromwell entered into a binding agreement with Stoneweg to sell its European fund management platform and associated co-investments, which total €3.8 bn of real estate assets under management, for a total consideration of €280 mln, subject to closing adjustments and regulatory approvals, which are anticipated to be in the coming weeks.
