AIG could sell real estate holdings

American International Group Inc, selling assets to repay a US government loan, may seek buyers for some of its $16 billion in global real estate holdings.

The largest US insurer, which agreed last week to an $85 billion federal loan to stay afloat, may find eager buyers for property it owns in more than 30 countries and 14 US cities. In Manhattan alone, it controls three office buildings with 2 million square feet.

"Many of AIG's properties could be trophy properties that don't come up for sale very often," said Ray Torto, Boston-based global chief economist for CB Richard Ellis Group Inc, the world's largest commercial real estate broker. That could spur interest from multiple bidders, he said.