UPDATE 1-Warehouse owner PointPark Properties to float in London

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LONDON, Oct 9 (Reuters) - Warehouse owner and developerPointPark Properties plans to list its shares on the LondonStock Exchange, to raise 250 million pounds ($401 million) tohelp fund the purchase of a property portfolio and reduce debt.

After months of inactivity in the European initial publicoffering (IPO) market, improved market sentiment has seenseveral companies kick off share sales over the last month.

On Tuesday Russian mobile phone operator MegaFonalso unveiled plans to float in London.

PointPark, which has 46 warehouse properties across Europe,said it would use the proceeds of its offering towards thepurchase of a 760.1 million euro ($985.7 million) propertyportfolio owned by Bahraini bank Arcapita and funds it manages.

The rest of the acquisition will be funded by issuingArcapita with a 15 percent equity stake in PointPark, also knownas P3, it said in a statement on Tuesday.

The company said money raised from the offering, being runby Credit Suisse and Deutsche Bank, would also be used to reducethe debt attached to this portfolio as well as to fund futuregrowth.

($1 = 0.6240 British pounds) ($1 = 0.7711 euros)

(Reporting by Kylie MacLellan)

((kylie.maclellan@thomsonreuters.com)(+44 207 542 0401)(ReutersMessaging: kylie.maclellan.thomsonreuters.com@reuters.net))