Poland opts for strategic investor in PHN real estate

WARSAW, Oct 4 (Reuters) - Selling a majority stake inPoland's state-owned real estate group PHN to a strategicinvestor would be the best solution, Treasury Minister MikolajBudzanowski said on Thursday.

PHN, created last year by pooling together 180 differentreal estate and land holdings, runs a portfolio estimated to beworth around 2.5 billion zlotys ($788 mln). The ministry saidearlier it planned to float PHN on the stock exchange.

The group's assets include, among others, a Warsaw officebuilding Intraco, built in the 1970s, which needs a majoroverhaul, as well as villas in the capital's upmarket districtof Wilanow rented by foreign embassies.

"If we can find a strategic investor interested in amajority stake (at PHN), then this would be the best solution,"Budzanowski told reporters.($1 = 3.1733 Polish zlotys)

(Reporting by Jaroslaw Kowalski; Writing by Marcin Goettig.;Editing by Jane Merriman)

(([e-mail])([phone])(Reuters

Messaging: [e-mail]))

Keywords: POLAND PHN/