PIMCO Offers Opportunities in Commercial Real Estate with New Flexible Real Estate Income Fund

Fixed income investment titan PIMCO has launched a new interval fund, the PIMCO Flexible Real Estate Income Fund (REFLX), which is intended to provide individual investors access to high quality, income-producing commercial real estate equity and debt.

REFLX is PIMCO’s first real estate focused interval fund and will invest in property-backed investments that provide stable cashflow streams and potentially be a hedge against inflation.

The fund will target asset classes that include, among others, private commercial real estate (CRE) equity and debt, commercial mortgage-backed securities, and other publicly traded CRE securities such as Real Estate Investment Trusts.

REFLX will be managed by a committee of managers from PIMCO and its parent company Allianz, including Dan Ivascyn, managing director and group CIO; Devin Chen, portfolio manager; Christoph Donner, CEO Allianz Real Estate of America; Russell Gannaway, portfolio manager; John Lee, portfolio manager; and Peggy DaSilva, head of US asset management, Allianz Real Estate of America.

“The extraordinary re-pricing of assets across financial markets this year has created what we think are some of the most attractive investment opportunities in more than a decade,” said Ivascyn.

“Higher yields and lower valuations in both public and private markets make for an attractive environment for patient investors ready to deploy funds in a flexible vehicle that can allocate investments across commercial real estate,” he added.

PIMCO manages a book of $190 billion in commercial real estate assets globally, including more than $118 billion in private real estate assets across sectors and geographies.

PIMCO launched its first interval fund in 2017 and has over $4.5 billion in assets under management across five continuously offered funds.