PIMCO assumes oversight of Allianz Real Estate
Fixed income investment manager PIMCO has officially assumed the leadership and oversight of Allianz Real Estate – a global commercial real estate investment business.
This partnership is among the world’s largest and most diversified commercial real estate platforms, managing more than USD100 billion in core, core-plus, value-add and opportunistic real estate assets around the world.
First announced by PIMCO and Allianz Real Estate in March of this year, the partnership expands PIMCO’s access to talent, resources, and data, which should enhance the firm’s existing private strategies platform, particularly those investment vehicles which emphasise real estate. Allianz Real Estate has historically been the captive real estate arm of Allianz’s multiple global insurance balance sheets and has grown into a successful investment engine. The portfolio holds more than EUR50 billion in private real estate equity and more than EUR20 billion in privately originated real estate debt. This global franchise is highly complementary to PIMCO’s legacy real estate efforts.
“This combination gives us greater scale in commercial real estate which will expand our prospects for attractive and compelling investment opportunities for clients seeking income-oriented or opportunistic real estate strategies,” says Emmanuel Roman, PIMCO’s Chief Executive Officer. “This partnership also reflects PIMCO’s strong bond with our parent Allianz and we have many people to thank for reaching this milestone including Allianz CEO Oliver Bate, the Allianz Board of Directors, and numerous colleagues across PIMCO, Allianz Real Estate and Allianz.”
“We look forward to working together with our colleagues in PIMCO’s real estate area to identify new ways to create products and develop client relationships and to deepen our partnerships across the industry using our expanded global capabilities and scale,” says Francois Trausch, Allianz Real Estate’s Chief Executive Office who will now also be a Managing Director at PIMCO.
“The economic shock caused by the global pandemic has created deep fissures in the commercial real estate market which have yet to be fully reflected in pricing and this creates plenty of investment opportunities,” says Dan Ivascyn, PIMCO’s Group Chief Investment Officer. “In addition, real estate debt markets continue to need flexible capital which was historically the domain of banks but is now more accessible through private lenders.”