UPDATE 1-Arcandor sells property stake to consortium

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FRANKFURT, March 19 (Reuters) - Germany's Arcandor (AROG.DE: Quote, Profile, Research) said on Wednesday it will get 800 million euros ($1.26 billion) for selling its 49 percent stake in property firm Highstreet to a consortium led by Deutsche Bank (DBKGn.DE: Quote, Profile, Research) property unit RREEF.

The consortium consisting of RREEF, Pirelli RE (PCRE.MI: Quote, Profile, Research), Generali (GASI.MI: Quote, Profile, Research) and the Borletti Group said separately they had signed a binding contract with Arcandor's Karstadt Quelle unit to purchase the stake in a deal with a total value of 4.56 billion euros, including 3.5 billion in property-secured debt.

The consortium also struck a deal with Goldman Sachs' (GS.N: Quote, Profile, Research) property fund Whitehall, which owns the other 51 percent of Highstreet, regarding joint control of the company.

The companies said they expected the deal, which is subject to the usual regulatory approvals, to be concluded at the end of May.

Arcandor shares rose 4.5 percent to 11.79 euros by 1557 GMT, bucking a 1.3 percent decline in the mid-cap MDAX index. (Reporting by Philipp Halstrick and Matthias Inverardi; editing by Elaine Hardcastle)