American International Group Inc. (NYSE: AIG), the beleagued insurance company that was brought to its knees by the subprime mortgage collapse, is re-entering U.S. real estate investment later this year.
AIG formerly had a vast $24 billion portfolio, with holdings around the world. But it had to sell most of its assets to pay back a $182.3 billion federal bailout after AIG's credit default swaps tied to subprime mortgages went sour.
The Wall Street Journal reported Wednesday that the insurance giant has reached out to developers for potential investments.
AIG's investment will eventually total hundreds of millions of dollars each year, and it will target multifamily housing, a sector of the U.S. market that has been robust as more Americans seek to rent instead of buying.
Potential partners include Durst Fetner Residential, the New York family controlled rental builder, about investing in new projects. Durst Fetner is currently developing W57, the unconventionally designed rental building by Bjarke Ingels Group. It is also moving forward with a 500,000-square-foot mixed-use project in Herald Square.
AIG also expressed interest in the Pinnacle Companies' $100 million project in Montclair, N.J., as well as projects in California and the southeast U.S., according to the Journal.
The U.S. government still owns around 70 percent of the company, but plans to sell its stake over time.
Shares of AIG were up 62 cents to $31.85 in mid-Wednesday trading.
SOURCE IBTimes
