$200M Inland, AIG JV Goes On Despite Failure

OAK BROOK, IL-Though American International Group Inc. (AIG) is now selling a lot of its interests to pay for its recent $85 billion bailout, a $200 million joint venture with locally-based Inland Real Estate Development LLC will continue. Questions have been raised in recent weeks as to the fate of some of AIG’s real estate holdings, following the failure of the company in September. However, an Inland Development spokesman says the joint venture and its associated assets remain secure, and the venture will continue to pursue properties, though on a slower timetable.

The Fed and the state of New York gave AIG an $85-billion secured revolving credit loan on Sept. 17 to help buttress the reinsurer from its mounting debt. AIG had accrued a debt of $75 billion. The company has now reportedly begun to sell off some of its assets to repay the two-year loan (which the government, through a taking of company stock, stands to profit if repaid).

Inland Development formed a $200 million joint venture in the summer of 2006 with AIG Global Real Estate, the real estate investment arm of AIG. At the time, Anthony Casaccio, president of Inland Development, said the venture would expand his company’s reach across the country, thanks to AIG’s strength.