American International Group Insurance, the embattled insurance and financial services company, is set to sell its Japanese headquarters for approximately $1 billion as part of plans to reduce its $45 billion debt to the US government, according to a report by the Wall Street Journal.
The report said that at least two suitors had been “vying” for the property, however it was expected to be sold to a Japanese insurance company.
AIG placed the 15-story Tokyo property adjacent to Imperial Place on the market in February.
According to the report, the insurance company owes the US government approximately $45 billion as part of a rescue package agreed last September that could rise to about $173.3 billion.
The sale of the headquarters would go some way to addressing this debt and sits in a wider program of divestments that also includes the sale of its personal car-insurance unit to Zurich Financial Services for $1.9 billion. That deal was agreed last month.
AIG is also pursuing the sale of its air-craft leasing unit, International Lease Finance Corp. It is understood to be close to agreeing a deal for the unit with “several consortia led by private equity groups” and could recoup between $4 billion and $6 billion, according to sources close to the sale process, the newspaper said.
In January, AIG began seeking bids for its property fund management arm, AIG Global Real Estate. The funds platform 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.