NEW YORK (Reuters) – Bailed-out insurer American International Group Inc may leave its headquarters in lower Manhattan next year when its lease expires, an executive at SL Green Realty Corp, the company that owns the building said.
AIG's lease for 803,000 square feet of the 1.1 million square-foot building at 180 Maiden Lane expires next year. SL Green bought a 49.9 percent interest in the building when it helped The Moinian Group refinance the property last year.
Jim Mead, SL Green Realty Corp chief financial officer said in a conference call with analysts Thursday that SL Green entered into the deal thinking there was a good chance AIG would leave.
"So we're actively exploring the possibilities of both a redevelopment of the asset and bringing it to the market for new tenants and also in discussions playing it out with AIG in terms of their occupancy," Mead said. "So it's still too early to tell there, but it's definitely getting a lot of our focus."
An AIG spokesman did not respond to a call on the matter.
AIG was one of the biggest near-catastrophes of the financial crisis. It received $182 billion in government bailout funds and has been working to turn itself around ever since. The U.S. government currently holds $30.8 billion in AIG stock, according to the company's websites.
Stifel, Nicolaus & Co analyst John Guinee said there's a good chance AIG will stay put and renew its lease rather than incur the expense, distraction and attention of moving.
"Given AIG's visibility and questionable financial stability, they are highly likely to renew," Guinee said. "Whether they downsize or not, it is too soon to tell. If they move into a nicer building, people will question the upgrade and quality. If they move into a lower quality building, people will question the vitality of the company."
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