New York Investment Firm, South Korean Bank to Buy AIG Buildings

June 10, 2009

A consortium including a New York investment firm and a Korean bank agreed to buy American International Group Inc.’s New York headquarters, the broker, CB Richard Ellis, said Tuesday.

Youngwoo & Associates and Kumho Investment Bank agreed to buy the two buildings, which are located at 70 Pine Street and 72 Wall Street in downtown Manhattan. The terms of the deal were not disclosed.

Last week, a source familiar with the transaction said the occupants of the Pine Street office are likely to stay there through the end of 2010, while those at the Wall Street location will be there through the end of this year.

The insurer’s headquarters at 70 Pine Street are in a 66-story building topped with a Gothic-like spire. It was the tallest building in downtown Manhattan prior to the building of the World Trade Center.

Both buildings, which are connected by a skywalk, were constructed in 1932 and have been owned and operated by AIG since the 1970s.

Separately, another source told Reuters that the insurer hopes to select about four banks by next week to lead an initial public offering of its Asian life insurance unit, American International Assurance Co. Ltd.

AIG shares fell 3 cents, or 1.8 percent, to $1.63 on the New York Stock Exchange at mid-afternoon.

(Reporting by Paritosh Bansal and Ilaina Jonas; Editing by Richard Chang)

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