Citicorp to Sell Condos in N.Y. Headquarters to Japanese Firm

Citicorp said Friday it will sell condominium units in its two Manhattan headquarter buildings to Dai-Ichi Seimei America Corp. for $450 million.

The sale to the U.S. affiliate of Japanese life insurer Dai-Ichi Mutual Life Insurance Co. is part of Citicorp’s plan to strengthen its balance sheet after the banking giant increased its loan loss reserves in May by more than $3 billion to cover problem Third World loans.

The Citicorp center is one of the landmarks of the New York skyline, a wedge jutting into the air. The second building is located on Park Avenue, among the most exclusive business addresses in the world.

The deal shows the continuing attractiveness for Japanese investors of New York real estate. A high Japanese yen and low profits on buildings at home have sparked heavy interest among Japanese firms in U.S. buildings.

Most of the $270 million after-tax profit will be recorded in the fourth quarter, the bank said.

Analysts and Citicorp said this was the first large commercial building that had been converted into a condominium.