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USAA, a group of diversified financial services companies, plans to sell its controlling interest in subsidiary USAA Real Estate to the real estate unit’s current management and a private investment group.
The San Antonio-based parent company said it will retain an ownership stake in USAARE.
USAARE CEO Len O’Donnell will continue operating the real estate business, which is expected to remain the exclusive investment manager for USAA’s real estate portfolio.
USAA said it made the move to simplify its operating structure, allowing the parent company to focus on its core auto, home, life insurance and retirement products.
The sale also cuts back on the number of financial services regulatory requirements USAARE is burdened by, allowing it to grow and reach newer levels of profitability, the company said.
“We remain as committed as ever to producing great results for USAA and its members,” O’Donnell said in a statement. “This change enables us to provide an even greater level of service to our clients and partners as we strive to maximize performance for their portfolios."
The restructuring is not expected to impact USAA Real Estate employees.
The transaction is expected to close in early 2020, subject to customary regulatory approvals.
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