UPDATE 1-Property group LEG narrows IPO price guidance - sources
* Price range guidance of 43-45 euros a share - sources
* Books covered at 44 euros a share - sources
* LEG owners to raise 1.31 to 1.37 billion euros in IPO
FRANKFURT, Jan 29 (Reuters) - German real estate group LEG Immobilien has narrowed the indicative price range for its planned listing on the Frankfurt stock exchange, three people close to the process told Reuters.
In what would be Germany's second-biggest initial public offering (IPO) in five years after Telefonica Deutschland , LEG told prospective investors that its shares would likely sell within a price range of 43-45 euros ($57.88-60.57) a share, three financial sources said on Tuesday.
LEG's majority owner Whitehall, a Goldman Sachs investment fund, and 11 percent-owner Perry Capital are therefore set to raise 1.31 billion to 1.37 billion euros from selling 57.5 percent of the share capital.
The IPO of Telefonica Deutschland generated proceeds of 1.45 billion euros.
"The books (of the LEG IPO) are covered at 44 euros a share," one of the people said.
"Books are covered including greenshoe," another source said, referring to a proportion of the stock which the shareholders can choose to sell if investor demand is high.
LEG, which initially suggested a 41-47 euro range, declined to comment. It is due to decide on a final price on Thursday, with trading to start on Friday.
Europe's IPO market, which has been struggling during the region's long debt crisis and sluggish economic growth, started to show signs of life in the final months of 2012 as confidence picked up.
While the recovery remains fragile, a lack of IPO activity through much of last year has left a backlog of deals that could come to market in 2013, bankers said.
Ebullient stock markets have already this month encouraged several firms in Europe, including Russian trading venue the Moscow Exchange and British housebuilder Crest Nicholson, to launch plans to float.
LEG plans to buy 10,000 apartments in Germany over the next two years, betting on a market increasingly sought out for its stable returns.
However, LEG will not be issuing any new shares on its listing, so will not reap any proceeds from its debut on the Frankfurt bourse.
DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.