AIG to Sell 2 Manhattan Buildings for $150 Million

June 25, 2009

American International Group Inc. agreed to sell two downtown Manhattan buildings, including its headquarters, for a total of $150 million, a source familiar with the matter said.

The two buildings, which are located at 70 Pine Street and 72 Wall Street, are being sold for for $100 per square foot, the source said, requesting anonymity because the price has not been publicly disclosed

AIG declined to comment.

Earlier this month the broker, CB Richard Ellis Group Inc., said a consortium including Youngwoo & Associates, a New York investment firm, and South Korean bank Kumho Investment Bank had agreed to buy the two buildings.

AIG expects to keep employees in the Pine Street building through the end of 2010, while those at the Wall Street location will be there through the end of this year.

AIG’s headquarters at 70 Pine Street are in a 66-story building topped with a Gothic-style 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.

The sale is part of a larger divestiture program by AIG, as it looks to repay U.S. taxpayers after a series of bailouts in which the federal government committed some $180 billion to AIG’s rescue, including about $85 billion in loans.

AIG’s shares were up 4 cents, or 2.9 percent, at $1.43 during morning trading on the New York Stock Exchange.

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