UPDATE 1-China's IFM Investments sets terms for U.S. IPO

* Real estate company plans to sell 16.65 mln ADS

* Expects shares to price between $8.75 and $10.75

NEW YORK Jan 13 (Reuters) - Chinese real estate company IFM Investments Ltd set the terms of its inital public offering on Wednesday, hoping to raise up to $179 million.

The company, which has a franchise agreement to sell real estate under the Century 21 brand in China, said it plans to sell 16.65 million American Depositary Shares, and expects them to price for between $8.75 and $10.75 each.

At the midpoint, the IPO would raise about $162 million, or a net $110 million.

In addition, the underwriters, led by Goldman Sachs and Morgan Stanley, have the option to buy an additional 2.5 million shares.

Funds affiliated with Goldman Sachs (GS.N) and GL Asia Mauritius Cayman Ltd are each selling a portion of their shares.

IFM said it will use the funds raised to open new offices, upgrade its systems, and for general corporate purposes.

The company reported net revenue of 443.7 million yuan ($65 million) for the nine months ended Sept. 30, up 112.4 percent from a year earlier. Net income was 88.3 million yuan, compared with a loss of 99.3 million a year earlier.

IFM plans to list on the New York Stock Exchange under the symbol "CTC."

(Reporting by Clare Baldwin; Editing by Ted Kerr)