Bond fund giant PIMCO is launching a new real estate finance company, and plans to raise up to $600 million through an initial public offering of stock, according to a new fling with the Securities and Exchange Commission.
The company is structured as a real estate investment trust whose shares will trade on the New York Stock Exchange under the symbol PIMR. PIMCO's entry into the market had been rumored for months now.
PIMCO says the REIT will acquire, manage and finance — directly or through subsidiaries — residential and commercial whole loans and MBS. It also will fund other types of commercial real estate debt.
The REIT plans to acquire a portfolio of agency RMBS. The loans underlying its initial portfolio will include fixed-rate loans, ARMs and hybrid ARMs. The fund manager also said it expects to sell not less than $10 million of its common stock in a separate private placement to certain members of its senior management team and other executives of PIMCO and its affiliates.
PIMCO stated in the filing that chief executive Jennifer Bridwell, who leads PIMCO's mortgage-related product development effort, will manage the new REIT's business affairs.
Her team also includes Dan Ivascyn and Scott Simon, both senior portfolio managers at PIMCO, who together will serve as co-chief investment officers.
