* Private investor scenario includes significant share issue
* Also includes subordinated debt transactions
* Aims to simplify capital base and reduce credit risks
* Says no certainty restructuring plan is feasible
* Shares up 7 pct (Recasts, adds detail, background, shares)
AMSTERDAM, Jan 28 (Reuters) - Dutch banking and insurance group SNS Reaal may issue a significant amount of shares to private investors and reorganise its debts, aiming to cope with property finance losses and strengthen its capital base.
There was no certainty the restructuring plan was feasible, SNS Reaal, the Netherlands' fourth-largest bank, said in a statement on Monday.
SNS Reaal, which received 750 million euros ($1 billion) of state aid in 2008 at the height of the financial crisis, is expected to require a second state bailout because of losses at its property unit and is due to come up with a restructuring plan next month when it reports earnings.
The company was looking at scenarios which would strengthen and simplify its capital base and reduce credit risks at its property finance operations, SNS Reaal said.
The property finance operations could be split off from the group, it said.
An SNS Reaal spokesman declined to say what kind of transaction was in consideration regarding its subordinated debt, but Dutch media have speculated its subordinated loans may have to be written down.
The company issued a profit warning last November, saying a restructuring would probably include a combination of measures, including the sale of assets, a limitation of property credit risks, the issuance of shares and the conversion of state aid securities into other shares.
SNS Reaal's property finance exposure, including commercial real estate loans to small and medium-sized companies, stood at 9.8 billion euros at the end of September, of which 2.3 billion were non-performing.
It has booked more than 1.3 billion euros of net losses on its property loans since 2009.
Shares up 7 percent, recover from record low of 0.674 euros set last week. ($1 = 0.7421 euros) (Reporting by Gilbert Kreijger; Editing by Hans-Juergen Peters and David Holmes)