USAA has reached an agreement in principle to sell a controlling interest in USAA Real Estate to the unit's management and an unnamed private investment firm, USAA spokesman Matthew Hartwig said in an email.
Neither Mr. Hartwig nor a spokesman for USAA Real Estate would name the private investment firm.
USAA would retain a significant ownership stake in USAA Real Estate, and Len O'Donnell, USAA Real Estate's president and CEO, would continue to lead the business. USAA Real Estate would remain the exclusive investment manager for USAA's real estate portfolio.
Terms of the deal, expected to close in early 2020, are not being disclosed.
USAA is selling the stake to simplify its operating structure and focus on its core businesses of banking; auto, home and life insurance; and retirements strategies.
"We believe both USAA and USAA Real Estate are best served by creating this strategic relationship and enabling the investment management business to operate more independently," USAA CEO Stuart Parker said in a joint news release.
The transaction would also reduce many financial service regulatory requirements for USAA Real Estate, according to the news release.
The deal "creates a deeper and richer alignment between our clients, USAA and the management team," Mr. O'Donnell said in the news release.
USAA Real Estate is planning to maintain its current workforce. USAA Real Estate's assets under management exceed $30 billion.
