AIG selling property to pay back aid

American International Group (AIG) announced this morning that it agreed to sell what is called a "prized Tokyo property" to Nippon Life Insurance for $1.2 billion. The property is located next to the Imperial Palace, has roughly one acre of land and the AIG Otemachi Building.

The transaction, which falls in line with what was expected when the property was put up for sale in February, should close during the second quarter and it will be paid in cash.

This sale is part of a larger program started by AIG that includes selling real estate and "other assets" in order to pay back the government. That is why I am a fan of this move -- at least it shows that the company is trying. Yes, AIG still owes the government $85 billion and $1.2 billion is basically a drop in the bucket, but it is something.