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.
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.
David Monfried, 212-770-7205
Teri Watson, 212-770-7074