KPA Pension Invested in the Copenhagen Infrastructure Growth Markets Fund II

May 12, 2025

Driving Efficiency: Lowering Administrative Costs

KPA Pension has continued its focus on improving cost-efficiency, resulting in a reduction of the administration cost percentage from 0.08 percent to 0.07 percent. This reduction contributes to maintaining low fees for traditional insurance, which is crucial for providing good pensions. (Source: Årsredovisning 2024, page 3)

Expanding Real Estate Footprint: Strategic Acquisitions in Key Urban Centers

KPA Pension has made significant real estate acquisitions during the year, focusing on office properties in attractive locations. Notably, the fund acquired the office project Yrket 4 in Solna from NCC for approximately SEK 3.6 billion in December 2024. This property will be developed into a new headquarters for Svenska kraftnät, with a 20-year lease agreement for the entire building. The building is planned to be BREEAM New Construction Excellent certified. The acquisition is expected to be finalized in 2028. Additionally, KPA Pension acquired the Mentorn 1 property from AMF Fastigheter AB for approximately SEK 3 billion. This property is located in central Stockholm, near Stockholm Central Station, and consists primarily of modern and flexible offices, certified BREEAM In-Use Very Good. These acquisitions aim to create value and improve conditions for good returns and pensions for customers over the long term. (Source: Årsredovisning 2024, page 5, 18)

Green Bond Investments: Funding Sustainable Urban Development

KPA Pension has significantly increased its investments in sustainable bonds, with a total of SEK 11.811 billion invested in such instruments by the end of 2024. This includes a SEK 1.012 billion investment in a new bond issued by the City of Stockholm, aimed at financing water infrastructure investments, and a SEK 266 million investment in a bond from Region Skåne, supporting energy-efficient buildings and public transport. The fund also invested SEK 50 million in a bond from Östersunds kommun, which is working towards becoming climate-positive by 2030. These investments align with KPA Pension’s strategy to support climate adaptation and green transition. (Source: Årsredovisning 2024, page 5, 18)

Infrastructure Investment: Powering the Green Energy Transition

KPA Tjänstepensionsförsäkring has invested SEK 2.1 billion in the Copenhagen Infrastructure Growth Markets Fund II. This infrastructure fund is focused on the energy transition in emerging economies, developing large-scale renewable energy infrastructure such as onshore and offshore wind power assets, solar parks, and energy storage solutions. The fund is classified as ‘dark green’ under the EU’s Sustainable Finance Disclosure Regulation (SFDR) and primarily invests in fast-growing middle-income countries in Asia, Latin America, and EMEA. (Source: Årsredovisning 2024, page 18)

Strategic Loan Partnership: Bolstering Real Estate Holdings

KPA Tjänstepensionsförsäkring has invested SEK 600 million in a secured loan alongside a Swedish bank. The borrower is the real estate company Sagax, and the loan is divided into Swedish kronor and Euro tranches. The underlying properties being refinanced are strategically located near Stockholm and Helsinki, with tenants primarily in industrial, warehousing, logistics, and retail sectors. Both tranches of the loan invested by KPA Tjänstepensionsförsäkring have a 5-year term. (Source: Årsredovisning 2024, page 18)

Exploring New Frontiers: Pension Capital’s Role in National Preparedness

KPA Pension is exploring the potential role of pension capital in investments related to Sweden’s total defense, particularly in light of the country’s NATO accession and the increasing need for infrastructure investments. The fund believes pension capital can play a significant role in strengthening societal preparedness, alongside investments in climate transition and adaptation. (Source: Årsredovisning 2024, page 3, 24)