AIG Announces $1.2 Billion Sale Of Tokyo Real Estate Asset To Nippon Life Insurance Company

NEW YORK--May. 11, 2009-- American International Group, Inc. (AIG) announced today an agreement to sell its prime real estate holding in Tokyo for approximately $1.2 billion in cash (¥115,500mm) to Nippon Life Insurance Company. The property consists of approximately one acre of land on which The AIG Otemachi Building in Tokyo is situated.

The property’s Marunouchi 1 chome address is one of the most coveted in central Tokyo's downtown business district. Marunouchi, Tokyo’s business center, is the highest rent district in Japan with demand for Class A space typically exceeding supply. AIG’s property is unique within the district because of its location next to and overlooking the inner moat of the Imperial Palace.

Article continues below...

The transaction is expected to close during the second quarter.

Edward Liddy AIG’s Chairman and Chief Executive Officer said, “This is a significant transaction because of the prominence and unique nature of the property and the highly attractive value that both AIG and Nippon Life Insurance Company are realizing through the transaction. This transaction has been successfully negotiated by AIG despite the difficult real estate market environment in Japan and globally. The sale generated substantial interest from both Japanese and foreign investors, resulting in a very competitive bidding process. AIG is pleased to effectively monetize this asset within the context of its restructuring effort. We view this transaction as a win-win for all concerned, with Nippon Life Insurance Company acquiring a premier real estate asset.

“We have reached agreement or closed over a dozen deals in the past several months, despite a very challenging economic environment. We presently are in various stages of discussions with respect to other potential transactions, as we continue to move forward with our asset disposition and restructuring efforts in order to serve the best interests of AIG and its constituents,” Mr. Liddy stated.

Merrill Lynch & Co. acted as financial advisor and Simpson Thacher & Bartlett LLP and Anderson Mori & Tomotsune acted as legal counsel to AIG on this transaction. Blackstone Advisory Services provided financial advice to AIG in connection with AIG’s global restructuring program.

American International Group, Inc. (AIG), a world leader in insurance and financial services, is the leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG's common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Ireland and Tokyo.

Source: American International Group, Inc.