AIG Global Real Estate Seeks $450 Million in Sale of South Korean Hotel

By | November 19, 2014

AIG Global Real Estate, a unit of American International Group Inc., is seeking at least $450 million from the sale of a luxury hotel in the South Korean capital, people with knowledge of the matter said.

AIG’s Korean real estate arm appointed Jones Lang LaSalle Inc. to find a buyer for the Conrad Seoul hotel, Michael Choi, a Seoul-based spokesman for the AIG unit, said in an e-mailed response to questions. It is being offered with a long-term hotel management agreement or with vacant possession, giving the buyer an option to run the hotel after the sale, one of the people said, asking not to be named as the matter is private.

The property is located within IFC Seoul, a mixed-use commercial complex that AIG Global Real Estate helped develop in the city’s financial hub. The five-star hotel, which was completed in 2012, is currently operated by Hilton Worldwide Holdings Inc. under the Conrad brand.

AIG, after being bailed out by U.S. taxpayers during the financial crisis, has been selling property assets in recent years to focus on its core insurance business. The company sold a Tokyo office property to Nippon Life Insurance Co. for about $1.2 billion in 2012.

Madeleine Little, a Singapore-based spokeswoman for Jones Lang LaSalle, declined to comment. AIG’s Choi declined to comment on the asking price for the hotel.

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