Pimco to Run Allianz Real Estate, Forming $100 Billion Unit
Pimco to Run Allianz Real Estate, Forming $100 Billion Unit
(Bloomberg) -- Pacific Investment Management Co. is taking over management of Allianz Real Estate, forming a combined unit with $100 billion in assets.
Pimco parent Allianz Group has a more-than 70 billion euro ($79 billion) real estate portfolio in Europe, the U.S. and Asia-Pacific region, according to a statement Tuesday. Pimco, which managed $1.91 trillion as of Dec. 31, is best known as a fixed-income manager and will oversee the combined real estate unit under its private strategies platform.
Pimco has been seeking to expand beyond its core bond business as yields have fallen and fund management fees narrow industrywide. Its private strategies -- which are available to institutional and high-net-worth investors -- include hedge funds, distressed debt, real estate debt and other illiquid alternative products.
“Bringing two high-performing, complementary specialist parts of the business together puts us in a position to provide customers a more comprehensive solution in real estate capabilities and strengthens our position in alternatives, where we are already among the top 10 global players,” Jackie Hunt, a member of the Allianz SE board of management, said in the statement.
Allianz, a Munich-based insurer that also operates as an asset-management company, acquired Newport Beach, California-based Pimco in 2000.
To contact the reporter on this story: John Gittelsohn in Los Angeles at johngitt@bloomberg.net
To contact the editors responsible for this story: Sam Mamudi at smamudi@bloomberg.net, Josh Friedman, Steve Dickson
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