Danish pension fund to fund PPP health project in Denmark
- Copenhagen Infrastructure Partners
- Goldman Sachs Bank
- Pensionskassernes Administration A/S (PKA)
IndustriensPension, the Danish pension fund for workers in the construction and other heavy industries, has agreed to fund its first public private partnership (PPP) for the construction of a hospital wing in the east of the country. The project involves a new radiotherapy unit at the Næstved Hospital.
The project will cost the fund around €110 million to build. The unit is set to come online in 2015 and will enable a further 10,000 Danes to have access to the cancer treatment.
Laila Mortensen, CEO of IndustriensPension, said:
"It is very satisfying that we know going into this public-private partnership can help to provide the citizens of the region better treatment. We ensure the 400,000 industrial workers [who save with us will have] stable returns over a long period, and have created Danish construction activity for the benefit of employment."
Danish pension funds are starting to invest heavily in infrastructure. Last week, National fund ATP and PFA Pension, Denmark's largest commercial pensions company, announced they had partnered with investment bank Goldman Sachs to boost share capital in local energy firm DONG.
In February 2013, IndustriensPension was part of a consortium that acquired a majority stake in a German offshore wind farm.
In August, PensionDanmark announced an investment of £130 million in a UK biomass power plant, via its fund Copenhagen Infrastructure I. In June, the fund also announced that it was funding an investment commitment of $200 million in capital for the Cape Wind project in the United states.