The German financial services company will transfer the shares of its real estate manager to Pimco, in a move that aims to strengthen its alternatives capabilities.
Jacqueline Hunt, member of the board of management of Allianz SE, commented that the incorporated company will manage over €100bn in real assets and that the deal represents a growth opportunity.
Hunt explained that it will allow a more comprehensive solution in real estate capabilities.
The firm said that “the organisations are complementary in terms of geography, products, investor coverage, people and expertise”.
Pimco’s real estate platform focuses on opportunistic investments and credit in the US and Europe.
Allianz Real Estate brings its global expertise in managing direct and indirect real estate investments in Europe, Asia and the US. It also has a European and US lending business.
The real estate arm is wholly owned by Allianz SE and currently part of its investment division, while Pimco was bought by Allianz in 2000.
The proposal is still subject to the finalisation of legally binding agreements, standard regulatory approvals and the participation of employee representatives in Europe.
The leadership teams of Allianz Real Estate and Pimco will work together in the coming months to align their expertise, Allianz said.
Pimco and Allianz Global Investors manage almost $1.7trn (€1.5trn) of assets.