May 7 (Bloomberg) -- Degi Deutsche Gesellschaft fuer Immobilienfonds mbH, a real estate investment company owned by Allianz SE, said it sold German property worth 2.45 billion euros ($3.33 billion).

The property has been sold ``for a price above the current market value'' to three companies ``affiliated to the Whitehall Funds managed by Goldman Sachs,'' Degi said in a statement distributed by the DGAP newswire today.

The transaction reduces the portfolio of Degi's property fund Grundwert-Fonds by more than half of its total investments to 2.3 billion euros, Degi said, adding that the transaction is expected to close within a few months. Degi won't sell new shares in the fund temporarily starting today to protect the fund's current investors from speculative buyers, it said.

Degi also sold the Eurotower, the current headquarter of the European Central Bank in Frankfurt, for 430 million euros to New York-based RFR-Holding, bringing the share of German investments of its Grundwerte-Fonds to 60 percent, it said.

Munich-based Allianz, Europe's biggest insurer, said on May 3 it plans to sell between 25 percent and 35 percent of its real estate holdings in Germany to diversify internationally.

To contact the reporter on this story: Oliver Suess in Munich at osuess@bloomberg.net

Last Updated: May 7, 2007 06:31 EDT