Kumho Investment Bank to buy AIG's New York buildings

A financial unit of South Korea's Kumho Asiana Group said Wednesday it is forming a consortium to buy the headquarters building of troubled American International Group, Inc. (AIG) and its annex in New York.

Kumho Investment Bank said that it and Yongwoo & Associates, a New York-based estate developer, have won an international bidding for the 66-story high rise and the annex, both of which are in central Manhattan.

"We are now close to forming a consortium with big financial firms, pension funds and other state funds," Kumho Investment Bank said. "We are also seeking to invite foreign investors to the consortium."

The company did not disclose financial terms of the deal. The market price of the two buildings is estimated at US$400 to $500 million.

The main office building is connected by a skywalk to its smaller building, totaling 1.26 million square feet of floor space, according to Kumho Investment Bank.

U.S. insurance giant AIG is raising money by selling its assets to repay state debts after receiving bailout money from the U.S. federal government.

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