Investment Services News

PIMCO Launches New Interval Fund, the PIMCO Flexible Real Estate Income Fund

PIMCO Launches New Interval Fund, the PIMCO Flexible Real Estate Income Fund

The Fund will invest in public and private commercial real estate markets, seeking to harness the expertise and resources of PIMCO’s $190 billion CRE platform

PIMCO, one of the world’s premier fixed income investment managers, has announced the launch of the PIMCO Flexible Real Estate Income Fund (REFLX), the firm’s first real-estate-focused interval fund that will invest in public and private markets by seeking to harness the expertise and resources of PIMCO’s $190 billion commercial real estate (“CRE”) platform. The fund aims to provide current income and long-term capital appreciation.

REFLX will be managed by a PIMCO investment committee comprised of Dan Ivascyn, PIMCO Managing Director and Group Investment Officer; Devin Chen, PIMCO Executive Vice President and Portfolio Manager; Christoph Donner, Chief Executive Officer – US, Allianz Real Estate; Russell Gannaway, PIMCO Managing Director and Portfolio Manager; John Lee, PIMCO Executive Vice President and Portfolio Manager; and Peggy DaSilva, Head of Asset Management – US, Allianz Real Estate.

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REFLX seeks to provide investors with access to a broad set of public and private real estate investment opportunities and will have the flexibility to invest in four distinct quadrants of the “CRE” markets: 1/ private equity by acquiring stabilized, income-oriented CRE; 2/ private real estate loans; 3/ public debt such as commercial mortgaged-backed securities, and 4/ public equity such as Real Estate Investment Trusts, or REITs.

“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 Mr. 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.”

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REFLX is an important step forward in the continued evolution in PIMCO’s interval fund complex, where the firm focuses on providing investors with access to less liquid, income-oriented solutions across a range of asset classes – credit, municipal bonds, emerging markets and real estate. PIMCO launched its first interval fund in 2017 and has over $4.5 billion of AUM across five continuously offered interval funds, as of 30 September 2022.

REFLX offers investors access to PIMCO’s institutional quality private real estate platform with the ease of a registered fund. Similar to a mutual fund, the fund is continuously offered. Additionally, investors can sell their shares back to the fund, although unlike the daily liquidity of a mutual fund, they may only be able to do so on a quarterly basis through REFLX’s periodic repurchase offers (currently expected to be at 5% of outstanding shares). As such, an investment in REFLX should be considered to be illiquid. For more information about the Fund, please see its prospectus and statement of additional information.

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