PIMCO is preparing to launch its first real estate investment trust, PIMCO REIT.
PIMCO REIT plans to raise $600 million in its IPO to invest in residential and commercial mortgage-backed securities and other residential and commercial real estate debt, according to SEC documents filed Tuesday.
When the new REIT completes its private placement, it will acquire a portfolio of agency residential mortgage-backed securities. Details of the purchase are not yet being provided.
In order to establish an alignment of interest, the REIT will sell at least $10 million of its common stock to members of the REIT’s senior management team and PIMCO executives in a separate private placement at the IPO price per share, the filing states.
Jennifer Bridwell, the managing director who leads PIMCO’s mortgage-related product development efforts, will be PIMCO REIT’s CEO. Dan Ivascyn and Scott Simon, senior portfolio managers at PIMCO, will be the REIT’s co-chief investment officers.