PFA has earned DKK 2.5 billion. DKK on logistics – now expanding massively in Denmark

8 September 2022

Since 2013, PFA has earned approx. 2.5 billion DKK to its customers to build and rent properties for storage, freight and e-commerce. Now PFA’s is expanding its Danish logistics center in Fredericia for the third time in almost two years to meet the high demand.

PFA’s focus on logistics in Denmark and internationally has proven to be an extremely good business. A new calculation shows that PFA’s logistics investments have yielded a return of 15.5 percent, corresponding to approx. 2.5 billion DKK since 2013.

“We saw early on that e-commerce would explode globally and that investments in logistics properties could become very lucrative if we seized the opportunity. Today, the logistics portfolio is the one of our real estate investments that has performed best and helped to deliver solid returns to PFA’s customers,” says Michael Bruhn, director of real estate at PFA.

Ten years ago, logistics as a real estate sector was not an investment area that many institutional investors were interested in. Typically, companies owned their own logistics facilities and the demand for freight was far lower than today. Since then, the global development in e-commerce has created an enormous need for logistics. In Denmark alone, e-commerce has grown from DKK 73 billion. DKK in 2014 to 181 billion DKK in 2021, figures from Dansk Erhverv show.

“When we look at the global world today, there are a number of megatrends that have taken root in society. The world’s metropolises are growing, people live closer together and the large urban areas are expanding significantly. Likewise, the world has gone online, where we not only surf the internet and communicate, but to a greater extent we also shop online, where e-commerce creates an increasing need for storage space”, says Michael Bruhn.

Since 2013, PFA has built up a logistics portfolio of approx. eight billion DKK, which covers over 35 properties in the USA, China, France, Spain, Italy, the Netherlands and Denmark.

Major expansion on the way in Denmark

In 2017, PFA together with ADP A/S invested in the logistics center Taulov Dry Port, which is located at the Port of Fredericia. Today, 100,000 m2 has been built and a total expansion of 100,000 m2 has previously been announced and will be ready during 2023. The properties are leased to companies such as Mærsk, DLG, Salling Group, Bestseller, Elgiganten and FSG Foods.

Today, PFA can announce another expansion of 85,000 m2, which should be ready at the beginning of 2024.

“Taulov Dry Port has taken a leading position in every way. We have a strong rental concept, and Taulov Dry Port is located in one of Denmark’s largest transport hubs with easy access to the motorway network, the railway, Billund Airport and the Port of Fredericia. Since the first square meters were inaugurated, we have experienced overwhelming interest from companies, and we expect that the new extension of 85,000 square meters will be let before it is completed,” says Michael Bruhn.

PFA is Denmark’s largest commercial pension company with 1.3 million. customers and DKK 620 billion. DKK under management. PFA has a goal of reducing CO2 emissions from listed shares, properties and credit bonds by 29 percent by the end of 2025.

Source: PFA
Multiple reports with cicle diagram and text

About Exelerating

The Exelerating platform helps you to gain relevant insights into € 6,000+ billion of European institutional assets. We do this by tracking and analysing thousands of public sources of data.

Learn more