Velliv, Pension & Livsforsikring’s (Velliv) real estate portfolio consists of three arms: direct investments, which represent over 90% of the portfolio, public private investments and indirect investments. It seeks to create an efficient portfolio composition through divesting smaller and management-heavy properties while adding or developing modern office, logistics and residential properties and continuously reducing the exposure to retail and/or properties that are outdated, peripherally located or have limited ESG potential.

Velliv’s most attractive risk-adjusted returns remain in the core/core+ segments. However, value-add and opportunistic investments were given a larger allocation in 2022 and 2023, thanks to favorable macro-economic factors. The aims for an 80% allocation in core/core+ and 20% in value-add and opportunistic investments.

Looking ahead, Velliv plans to invest in and develop intergenerational residential communities that house mixed generations in a co-living scheme, which is based on extensive research of tenant demand and trends. The underlying scheme and Velliv’s concept expect to have a community manager for each site and a range of convenience services.

Real estate represented 10.2% of PensionDanmark’s portfolio at the end of 2023. The strategy is to develop and invest in modern, well located and sustainability certified properties with solid long-term tenants. The firm invests in different types of commercial properties, including offices, hotels, retail, logistics, residential real estate and urban areas.

The firm also focuses on development of residential properties to provide diversification in the real estate portfolio. Office buildings also provide long-term returns.

PensionDanmark's ‘Programme for Sustainability’ and biodiversity strategy sets out its framework for how it develops buildings and urban areas to maximise the financial return to its members and while simultaneously implementing high standards for climate and biodiversity solutions.

To measure the outcome and success of its investments, PensionsDanmark developed key performance indicators for costs and investments in commercial and residential properties and benchmarks relative to other investors. It also meets with its commercial tenants on a regular basis to follow up on the performance of the properties.