Pimco via Allianz Forms New $100B RE Business Unit

Newport Beach-based Pacific Investment Management Co. is taking over management of Munich-based 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 Bloomberg News report. 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.

According to the report, Pimco has been seeking to expand beyond its core bond business, as yields have fallen and fund management fees narrow industrywide. Its private strategies, available to institutional and high-net-worth investors, include hedge funds, distressed debt, real estate debt and other illiquid alternative products.

Pictured: Pimco headquarters in Newport Beach, CA.

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