PIMCO’s new real estate finance firm, PIMCO REIT, is planning to raise about $600 million through an initial public offering, The Wall Street Journal reports. PIMCO is also planning to sell no less than $10 million in common stock to members of its management.
After the sale, the company will buy a portfolio of mortgage-backed securities issued or guaranteed either by a U.S. government agency or a federally charter company such as Fannie Mae and will managed by PIMCO REIT Management, adds Reuters. The company has appointed Credit Suisse, Goldman Sachs and JP Morgan as underwriters on the IPO.
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