Danish pension fund, P+, has become the latest pension fund to join the investor group looking to build the Danish Armed Forces' new barracks, having made a three-digit million investment in the project.

P+ already has a number of investments in the European defense industry, and said that the investment in the new barracks for the Danish defense is "well in line" with its investment strategy.

P+ CEO, Kåre Hahn Michelsen, said: "In P+, we have had the same approach to investments in defense and weapons companies for a number of years.

"We currently have 24 investments in the European defense industry, and the Defense and the Ministry of Defense's agencies are some of the largest employers among our members.

"We have long been open to new investment opportunities that can support the Danish defense and at the same time deliver a reasonable return to our members. Therefore, we see it as a completely obvious investment opportunity that we can hopefully help build new barracks."

P+ joined on equal terms with the other investors in the group, which was initiated by AP Pension, and is bidding for the task of constructing the barracks as a public-private partnership (PPP).

This approach means that private investors will be responsible for the construction of the barracks and for the subsequent operation and maintenance, before the barracks are sold to the state at a later date, which Michelsen said "strikes the right balance between utilising public and private resources".

"As private investors, we can assume the risks associated with building, operating and maintaining the barracks," he explained.

"In return, the state will eventually take over the barracks at a pre-agreed price, which ensures a stable return on our members' pensions. Overall, it is a really strong investment case – both for the state, the defense and our members in P+."

In addition to this, P+ pointed out that the new development also has a low carbon footprint, as the new barracks will be built in modules made of wood, which has a low CO2 footprint compared to other building materials.

The modules can also be adapted for different purposes and can be quickly assembled and installed on the construction site, meaning that the new barracks can be expected to be built in just about half a year from the start of the project.

This builds on the recent news that AkademikerPension has also invested in the project, with industry experts suggesting that the growing focus on defence funding expected to provide an "opportunity" for pension fund investors.

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