Nov. 6 (Bloomberg) -- American International Group Inc., the insurer bailed out by the U.S., will vacate an office building in Tokyo next month and record a $1.4 billion gain on the transaction in the fourth quarter.
AIG agreed in May 2009 to sell the property, which includes a 15-story building overlooking Japan’s Imperial Palace and an acre of land, for about 115.5 billion yen and remained a tenant of buyer Nippon Life Insurance Co. The deal wasn’t booked as a sale under U.S. accounting rules because AIG was still leasing in the building, the New York-based firm said yesterday in a filing.
“With tenant leases set to expire in December 2010 and the buyer not intending to extend the leases with any of the tenants, AIG will be vacating the building and a sale will be deemed to have occurred,” the insurer said.
Chief Executive Officer Robert Benmosche is selling assets to repay a $182.3 billion U.S. rescue. AIG reaped a combined $36.7 billion by divesting its two largest overseas life- insurance divisions, AIA Group Ltd. and American Life Insurance Co., the firm said this week.
The building, located in central Tokyo’s Marunouchi business district, was constructed in 1974 and has 404,294 square feet (37,560 square meters). Tokyo is the world’s third most expensive office market after London and Hong Kong.
Read the rest of the article here: http://www.businessweek.com/news/2010-11-05/aig-to-vacate-tokyo-office-book-1-4-billion-gain.html
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What AIG will go through to get as much cash as possible never ceases to make me laugh with every passing day. Before the recession imagine the what there share price would be if they sold those two divisions for what would have probably been more then. How the mighty have fallen.
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