AIG sells Japan headquarters

The transaction, which is among the biggest divestitures New York-based AIG has made to reimburse the US government for its massive infusion of aid, is expected to close in the second quarter.

The 35-year-old building is 15 stories and sits on prime real estate in central Tokyo, next to the Imperial Palace. The property consists of about one acre of land, the company said.

AIG's roots in Japan extend back to 1946, and the company is now the country's biggest foreign casualty insurer.

"AIG is pleased to effectively monetize this asset within the context of its restructuring effort," AIG chief executive Edward M. Liddy said in a statement. Media reports last week discussed the possible sale of the building for around $1 billion.

Separately, an internal memo with the subject line "Seize the Future" cited by The Wall Street Journal noted AIG's turnaround may take some time.

In a memo dated April 23, an initiative code-named "Project Destiny" involved a 45-day review of the insurer's businesses that's supposed to lead to a multiyear restructuring plan, the report said.

AIG has received $182.5 billion in financial support from the government since September.

A large part of the memo, sent to employees by e-mail from Liddy, consisted of an update on the project by AIG chief restructuring officer Paula Reynolds, according to the paper.

The project may be discussed at a congressional hearing about AIG, scheduled for tomorrow, the report said.

AIG spokesman Mark Herr said the company regularly posts "Seize the Future" memos to employees, and a recent memo did discuss restructuring efforts by the company.

Since its initial cash infusion, AIG has been working toward repaying part of the government loan by selling off business units.

Last month AIG sold its car insurance unit, 21st Century Insurance, to Zurich Financial Services Group for $1.9 billion, the largest divestiture by AIG since September.