AIG Announces Sale of Prime Tokyo Real Estate Asset for Appr

 

Tuesday, May 12,2009, 11:50:09 AM   Click:

NEW YORK - (BUSINESS WIRE) - American International Group, Inc. (AIG) announced today an agreement to sell its first property in Tokyo for about $ 1.2 billion in cash (¥ 115.500 mm) Nippon Life Insurance Company. The property consists of approximately one acre of land on which Otemachi AIG Building is located in Tokyo.

The property of Marunouchi 1 chome address is one of the most coveted in the center of Tokyo, Business Center. Marunouchi, business center of Tokyo, is the highest rent district in Japan at the request of the Class A space usually exceeds the supply. AIG is the unique property in the district because of its location next to and overlooking the inside moats of the Imperial Palace.

The transaction is expected to close in the second quarter.

Edward Liddy AIG chairman and CEO said: "This is a major transaction because of the importance and unique nature of the ownership and attractive value that both AIG and Nippon Life Insurance Company achieve through the transaction. This transaction was negotiated successfully by AIG despite the difficult real estate market in Japan and the world. The sale generated a substantial interest in both Japanese and foreign investors, leading to a bidding process is highly competitive. AIG is pleased to monetize this asset effectively as part of its restructuring effort. We view this transaction as a win-win for all parties concerned, with Nippon Life Insurance Company acquires first property.

"We have concluded an agreement or closed more than a dozen offers in recent months, despite a very difficult economic environment. We are currently in various stages of discussions with respect to other operations as we continue to move forward with our disposition of assets and restructuring efforts in order to best serve the interests of its constituents and of AIG, "said Liddy.

Merrill Lynch & Co. acted as financial advisor and Simpson Thacher & Bartlett LLP and Anderson Mori & Tomotsune acted as legal adviser to AIG on the transaction. Blackstone provided advisory services to financial advice AIG AIG as part of the overall restructuring program.

American International Group Inc (AIG), a global leader in insurance and financial services, is the leading international insurance organization with operations in over 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual around the world much bigger losses networks and life insurance of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG common stock is traded on the NYSE and stock exchanges in Ireland and Tokyo.




Contact:
AIG
News Media:
David Monfried, 212-770-7205
or

Investment Community:
Teri Watson, 212-770-7074