A RREEF-led consortium has agreed a deal to buy a 49% stake in a portfolio of German department stores from the Arcandor Group.

As tipped by Property Week, RREEF, the real estate arm of Deutsche Bank, teamed up with Pirelli, Generali and the Borlettie Group to buy the stake in the ‘Highstreet’ portfolio for €4.6bn (£3.5bn).

Arcandor is the German department store operator formerly known as Karstadt Quelle. In November it put its 41% stake up for sale in the Highstreet investment vehicle, which holds 164 properties covering a total 34.4m sq ft. There is a total lettable area of 22.6m sq ft.

The remaining 51% is owned by Goldman Sachs’ Whitehall fund. Pirelli will act as asset manager of the portfolio jointly with Whitehall.

It is predicted the deal will close in May.