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UPDATE 1-AIG to sell Asia real estate business to Invesco-source

Published 11/08/2010, 09:52 PM
Updated 11/08/2010, 09:56 PM

* AIG in final talks to sell its Asian real estate business

* AIG, Invesco aim to sign the deal later this month

* Invesco to officially take over the business by early 2011 (Adds details, quotes)

By Lee Chyen Yee

HONG KONG, Nov 9 (Reuters) - American International Group Inc is expected to sell its Asian real estate business to Invesco Ltd later this month, a source said on Tuesday.

The source said AIG's gross property assets were currently worth around $5 billion, although the actual cost of the deal was expected to be in the tens of millions.

"The gross asset value could change in the end, depending on valuations," the source, who declined to be identified as he was not authorised to speak to the media.

The deal would allow U.S.-based Invesco to take over AIG's real estate assets and property funds, as well as its staff in Asia, including Japan, the source said.

Both parties aimed to sign the deal later in November, with Invesco expecting to officially take over the business by early next year, the source said.

Invesco and AIG declined to comment.

On Monday, AIG's shares closed more than 2 percent lower, while Invesco fell 2.8 percent, both underperforming the Dow's <.DJI> 0.33 percent fall.

AIG, rescued by the U.S. government during the financial crisis with an aid package that ballooned to $182.3 billion, has been disposing of assets to pay back its bailout, selling life insurance business Alico to MetLife Inc and listing AIA Group Ltd <1299.HK> in Hong Kong. (See www.reutersrealestate.com for Reuters' global service for real estate professionals) (Editing by Chris Lewis)

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