Allianz SE will transfer its shares in Allianz Real Estate to fixed income specialist firm Pimco in a bid to create one of the world's largest global real estate investment managers, according to the firms.
Allianz Real Estate, which currently has more than €70bn of assets under management (AUM), will end up with €100bn of real estate assets across Europe, the US and Asia Pacific.
The firms said they were complementary in terms of geography, products, investor coverage, people and expertise.
In a statement, they said the respective leadership teams will work together in the coming months to align their expertise more closely while ensuring that both organizations remain fully committed to fulfilling the various fund investments and institutional mandates of their current configurations.
Jackie Hunt, member of the board of management of Allianz SE, said the move was "an excellent growth opportunity".
Hunt continued: "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."
Pimco CEO Emmanuel Roman said that by incorporating Allianz Real Estate into its existing suite of private solutions, the firm intended to "significantly enhance our capabilities in an area that has become a critical component of our clients' portfolios".
"Real estate has been, and will continue to be, central to the development of our private strategies platform, which we consider essential to providing our clients with alternative approaches to achieving their long-term investment objectives," Roman added.