Saxo Bank, the online trading and investment firm, will now offer property investment products for both private clients and institutional investors through a new company, Saxo Properties.

Danish real estate specialists Jesper Damborg and Claus Klostermann will become chief executive officer and managing director of investments respectively.

“Initially, Saxo Properties will focus on handpicked Copenhagen residential, office and retail properties. The first fund will close within the next three months, but we intend to establish a number of funds with a significant ownership capital of at least DKK250m,” says Damborg.

Saxo Bank offers liquidity, products and services to clients as obtained from other financial institutions. Saxo Properties will use the same model.

Saxo Bank has hired Flemming Schandorff, the former chief operating officer of ISS, to a similar position at Saxo Properties to facilitate administration of the estates.

“First and foremost, Saxo Properties will prioritise achieving attractive market returns, but we will also focus on how to capitalize on tight cost control and good management, such as rebuilding, mixed lease and general maintenance,” says Damborg.

Last year, Saxo Bank bought Sirius Asset Management, Capital Four and 51 per cent of Global Evolution.