GLOBAL - RREEF, the real estate division of Deutsche Bank Asset Management, has sold an Italian department store first acquired in 2005 to Thai investors for €260m. 

While terms of the transaction were not disclosed, the La Rinascente development was bought by Central Retail Corporation, a retail conglomerate from Thailand, following extensive refurbishment by the investment manager.

Chris Papachristophorou, global head of RREEF's Opportunistic Investments (ROI) business, said the sale marked a significant milestone for the business.

The initial acquisition six years ago saw RREEF and Italian private equity firm Investitori Associati envision a turnaround strategy, the company noted, changing the perception that the development was a "low-end" development.

Papachristophorou added: "It demonstrates ROI's ability and experience in successfully executing corporate transactions, notwithstanding the broader economic challenges. The La Rinascente investment achieves excellent returns for our investors and demonstrates the strength of both the local Italian team and the broader RREEF platform."

In other news, private equity real estate investor MGPA and CarVal Investors have announced the acquisition of two properties in London's city centre for £35m (€40m).

The deal, done jointly with property developer Quadrant, will see former UK Royal Mail properties in Moorgate replaced with a 12-storey, 225,000 square feet high rise of grade A office property by 2013.

Laurent Luccioni, chief executive at MGPA Europe, said the deal would seek to take advantage of the supply/demand imbalance for office space existing in London.

In related news, Tishman Speyer's European Core fund has acquired an office property in the Westminster district of London.

While the company did not reveal the price paid to Vito Capital, it stressed that it was pleased with buying the "well-positioned" asset, which is currently 100% let to a government department.

Also in London, Legal & General's managed property fund announced the start of a £65m refurbishment of an office space in Covent Garden.

The historic building will see only its façade remain intact, with L&G aiming to redevelop it to fit the highest sustainability standards - targeting an "excellent" rating by BREEAM.

Finally, Germany's TAG Immobilien has acquired a €150m residential property portfolio from an undisclosed seller.

The deal will see TAG gain a new major shareholder, with the seller issued with more than 5m new shares at €8 each and an additional payment of as much as €9m agreed. In return, the real estate manager will be given shares to five of the companies that own the portfolio.

The agreement will see the unnamed fund company gain a 7.8% stake in TAG. The company noted that only 6.3% of the 3,000 residential and further 71 retail units were not let.