Danish Real Estate Club wins IPE Real Estate Award for Outstanding Industry Contribution
20 Jun, 2006, Amsterdam
The Danish Real Estate Club won the IPE Real Estate Award for Outstanding Industry Contribution at an awards gala held in Amsterdam on Thursday night. The Club was formed in 2004 under the advice of Cushman & Wakefield, with five Danish pension funds joining together to invest in indirect property vehicles. In 2005, the Club committed around EUR 350 million into the European indirect markets, advised by the Indirect Investment team at Cushman & Wakefield.
The Club structure allows Members to collaborate on particular fund investments without the constraints of a Fund of Funds, whilst still achieving significant benefits such as sharing due diligence costs, knowledge and experience; gaining collective representation on Fund boards; sharing market information and investment strategy.
Henrik Kolind of KP, currently one of the most active investors in the Club, was the originator of the club-style structure, and the success of the Danish Real Estate Club has been reflected in the increased investment volumes, and by the style of vehicles that have been invested into, starting with the balanced pan-European vehicles, and moving to sector specialist vehicles at the value add/opportunity end.
Henrik Kolind of KP said: "This award is a reflection of the recognised benefits of making indirect investments via the Club structure and there have been clear benefits from making investments as a collective group of like-minded investors. We have been able to share our due diligence costs and market experience as well as gain greater bargaining power in the market."
The members of the Danish Real Estate Club include: PKA A/S, Pen Sam Liv, KP A/S, PFA Invest International A/S (PFA) and Finanssektorens Pensionskasse (FSP). When the Club was created, these funds accounted for over 20% of the total Danish pension fund market with around EUR 52 billion in assets.
Julian Schiller, head of the C&W Indirect Investment team said: "We are very pleased for the Danish Club for winning this award and very proud to have worked with the Club from its conception. Working with the Club over the last few years has been a valuable learning experience for C&W and for the Club members. Given the flexibility of the club-style approach to investment, we are hopeful that we can replicate this structure in other markets where we feel the concept would be successful. Indeed, we are already speaking to a number of interested investors."