AIG Sells Tokyo Building for $1.2 Billion

American International Group has signed an agreement to sell its prime real estate holding in Tokyo for approximately $1.2 billion in cash (Yen115.5 billion) 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 transaction is expected to close during the second quarter.

AIG noted that 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.”

Edward Liddy AIG’s Chairman and CEO commented: “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.”

Source: AIG – www.aig.com

Topics Mergers & Acquisitions AIG Japan