Three of Denmark’s largest pensions have partnered with developer CASA and property manager DEAS to build a town court building in Svenborg, on the Danish island of Funen.
PensionDanmark, Sampension, and PKA have established a public-private partnership (PPP) with both companies to build, maintain and operate the facility for a period of 20 years. The pensions will provide an equal share of the funding needed for the construction and management of the DKK175 million (€24 million; $30 million) project.
Construction of the 4,000 square metre building, which will gather the court’s activities under one roof, is expected to complete by June 2016. The facility will house more than 40 staff, who for now are scattered across several locations in Svenborg.
Torben Pedersen Möger, president of PensionDanmark, said the deal was further proof that the PPP model had put down “serious roots” in Denmark.
The announcement comes two years after PensionDanmark, Sampension, and PKA teamed up to create a “one-stop shop” to help public authorities plan, build and finance construction projects. The initiative, the three pensions hoped at the time, would allow them to deploy up to DKK5 billion in infrastructure and real estate PPPs.
The Svenborg court building is second Danish PPP backed by PensionDanmark this year, following its investment in Vejle’s psychiatric hospital project last March.
It is also PKA’s third, after the pension invested in the Vejle project as well as another hospital PPP in Skeiby last June. The latter, which involves financing of DKK1.3 billion, is the biggest hospital PPP project in Denmark so far.
PKA is currently invested in five healthcare sector buildings across the country.