AIG has appointed two senior officials to help restructure its real estate operations and sell its property fund management business, the firm announced today.
Former AEW Capital Management veteran Robert Gifford has been named chief executive officer of AIG Global Real Estate, while William Glasgow, former chief operating officer of private equity real estate firm Scanlan Kemper Bard Companies, has been appointed chief restructuring officer.
The New York-based insurance company is in the process of trying to sell its property fund management business, which invests in the core-plus, value-added and opportunistic sectors. AIG Global Real Estate managed more than $12.4 billion of assets and $5.2 billion of equity commitments on behalf of 15 funds as of 30 September last year. Including its direct portfolio, AIG Global Real Estate has $24.3 billion of assets under management in 50 countries globally.
Paula Rosput Reynolds, AIG vice chairman and chief restructuring officer, said Glasgow would oversee the real estate restructuring programme.
Gifford meanwhile spent 22 years with Boston-based AEW, latterly as principal, and prior to that worked for shopping centre developer, The Rouse Company.
According to a statement, Gifford succeeds Jeffrey Hurd, head of asset management and AIG chief administrative officer, who was servicing as interim president and chief executive officer of the real estate unit. Hurd will resume his previous responsibilities on a full-time basis.
In June, AIG agreed to sell its New York headquarters and an adjacent building for an undisclosed sum to a consortium including investment and development firm Youngwoo & Associates and Korean bank Kumho Investment Bank. The two offices, at 70 Pine Street and 72 Wall Street, total 1.4 million-square-feet.
In May, AIG sold its Tokyo headquarters to Japanese insurance company Nippon Life for $1.2 billion. AIG is looking to repay more than $180 billion in bailout money provided by the US government.