American International Group Inc (AIG.N) agreed to sell a prized Tokyo property to Nippon Life Insurance Co, Japan's largest life insurer, for $1.2 billion, in one of its largest asset sales since a September rescue.
Nippon Life will pay cash for the property, which is situated next to the Imperial Palace and has about 1 acre of land and the AIG Otemachi Building, AIG said on Monday.
The transaction is expected to close during the second quarter.
The price for the building is in line with what was expected when it was put on the market in February.
The sale is part of a larger divestiture program by AIG, as it looks to sell real estate and other assets to pay back the U.S. government.
The government has committed some $180 billion in AIG's rescue, including about $85 billion in loans that the insurer is trying to repay with these divestitures.
AIG said in March it was also weighing the sale of its headquarters in New York.
In April, it announced the sale of its U.S. auto insurance business to Zurich Financial Services for $1.9 billion, marking its largest asset sale since its rescue.
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