Allianz Real Estate will become part of Pimco's Private Strategies platform within its Alternatives unit, as part of the latter's strategy to grow its real estate investments worldwide.
Fixed income investment manager Pimco and parent company Allianz Group have agreed to transition the management and oversight of Allianz Real Estate, with more than €70 billion ($79.25 billion) in assets under management, to Pimco, Allianz said in a press release on Wednesday.
The move will create one of the largest real estate managers globally, with over €100 billion in real estate assets under management. The added scale, complementary expertise, and an expanded global footprint will help Pimco pursue attractive investment opportunities on behalf of its clients, the statement said.
«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,» Emmanuel Roman, Pimco CEO, said.
Asian Business Grows
The news comes just a week after Allianz Real Estate announced its 2019 results, with a 16 percent year-on-year growth in its assets under management to a record €73.6 billion, and its Asian business growing to €5.5 billion, up 83 percent. It also noted its expansion in Europe and the Asia-Pacific region.
The firm's largest deals in 2019 took place in the Asia-Pacific region, including the 100-percent acquisition of a €1.1 billion portfolio of core multi-family residential assets in Japan, as well as a 60-percent stake in DUO Tower, a marquee commercial development in Singapore.
