PIMCO, one of the world’s premier fixed income investment managers, and its parent company Allianz Group, have agreed to transition the management and oversight of Allianz Real Estate to PIMCO. Allianz Real Estate will become an important component of PIMCO’s growing Private Strategies platform, augmenting PIMCO’s existing opportunistic real estate equity and private lending efforts. Upon completion of the proposed transition, PIMCO will become one of the world’s largest and most diversified real estate investment managers, with more than €88.2bn ($100bn) in real estate assets under management, deployed across the opportunistic, value-added, core, and securities strategies.
Historically the exclusive real estate investment arm of Allianz and its major insurance subsidiaries, Allianz Real Estate has built a broad and deep organization across its primary markets in Europe as well as the US and the Asia-Pacific region. Its 440 employees underwrite and manage a property portfolio of more than €70bn, the majority of which represents investments in core and core-plus real estate equity, as well as a meaningful presence in private real estate lending.
“Real estate has been, and will continue to be, central to the development of our Private Strategies platform, which we consider essential to providing our clients with alternative approaches to achieving their long-term investment objectives,” said Emmanuel Roman, PIMCO’s Chief Executive Officer. “By incorporating Allianz Real Estate into PIMCO’s existing suite of private solutions, we intend to significantly enhance our capabilities in an area that has become a critical component of our clients’ portfolios.”
“This is an excellent growth opportunity,” said Jackie Hunt, Member of the Board of Management of Allianz SE. “Bringing two high performing, complementary specialist parts of the business together puts us in a position to provide customers with a more comprehensive solution in real estate capabilities and strengthens our position in Alternatives, where we are already among the top 10 global players.”
“PIMCO sees tremendous long-term value for clients in real estate, particularly in private strategies which continue to offer patient investors the opportunity to achieve excess returns,” said Dan Ivascyn, PIMCO’s Group Chief Investment Officer. “Combining Allianz Real Estate with PIMCO’s already deep expertise in private real estate – and our opportunistic strategies more broadly – will expand our access to investment talent, transaction flow, and real-time market data, with the goal of bringing multiple benefits to our existing investors.”
