UPDATE 1-Poland to float up to a quarter of real estate firm PHN

* State to float up to 25 pct in Q1
* IPO earlier delayed due to weak markets, complicated
portfolio
* Group in red due to heavy writedowns on portfolio

(Adds quote, background)
WARSAW, Jan 14 (Reuters) - Poland is moving ahead with plans
to float up to 25 percent of real estate holding firm PHN before
finding a strategic investor for the company which has a
portfolio estimated to be worth 2.5 billion zlotys ($810
million).
The firm, created in 2011 when the Polish government pooled
together 180 different real estate and land holdings, said in a
statement it would be floated on the Warsaw bourse in the first
quarter.
"After the offering, the selling shareholder intends to
sell in a public tender offer a significant block of shares to a
selected strategic investor," PHN said.
Poland had previously delayed plans to float PHN, with
analysts saying they feared low demand due to a weak market for
initial public offers combined with the firm's intricate
portfolio of real estate assets.
The group's assets include Warsaw office building Intraco,
built in the 1970s, which needs a major overhaul, as well as
villas in the capital's upmarket district of Wilanow rented by
foreign embassies.
It is also developing residential projects.
In the first nine months of last year, PHN reported a loss
of 143 million zlotys on revenue of 141 million due to a 184
million zloty writedown in the fair value of its properties.
In 2011, the company lost 159 million zlotys after a
writedown of 117 million.
Earlier this month, Radius Group's subsidiary Ringwood
Financial received permission from the anti-monopoly office to
buy a controlling stake in PHN, but the Treasury Ministry said
it was only a potential investor.
Citi, Deutsche Bank, Societe Generale and UBS Investment
Bank are acting as joint global coordinators and bookrunners for
the offer. DI BRE Banku, DM BZ WBK S.A. and Wood & Co. will
serve as joint bookrunners and DM PKO BP is acting as offering
agent and joint bookrunner.
($1 = 3.0850 Polish zlotys)

(Reporting by Chris Borowski; Editing by Hans-Juergen Peters)