Nippon Life Insurance Company has agreed to pay the equivalent of $1.2 billion for an acre of land in Japan that is now owned by American International Group Inc.

Nippon Life, Osaka, will be acquiring the land under the AIG Otemachi Building, according to AIG, New York.

The land overlooks the inner moat of the Imperial Palace.

AIG hopes to complete the deal by June 30.

“The sale generated substantial interest from both Japanese and foreign investors, resulting in a very competitive bidding process,” AIG Chairman Edward Liddy says in a statement.