UPDATE 1-Realdania raises $954 mln from Danske stake sale

* Reduced its stake by around half

* Sold 52 mln shares for 105 crowns each (Updates with official confirmation)

LONDON/COPENHAGEN, March 6 (Reuters) - Danish philanthropic association Realdania said on Wednesday it had raised 5,460 million crowns ($954 million) from the sale of around half of its stake in Danske Bank.

Realdania, whose 10.07 percent stake in Danske accounted for more than 40 percent of its assets, said the proceeds would be reinvested to diversify its shareholdings.

It said the sale of 52 million shares, or 5.2 percent of Denmark's biggest lender, to institutional investors had been priced at 105 crowns per share, confirming an earlier Reuters report. The sale was oversubscribed.

That represents a 5.7 percent discount to Tuesday's closing share price of 111.3 crowns. Shares in Danske fell 4.6 percent to 106.2 crowns by 1018 GMT.

Danske, which has been stung by bad debts from a burst property bubble and writedowns on loans to struggling farmers, has raised new capital twice in two years and laid off staff to in a bid to turn its business around.

After a 20 billion-crown rights issue in 2011 it raised 7 billion crowns in October last year from selling new shares to try to establish itself among the top three Nordic banks and get an improved rating from agencies.

Last month it said it had reached a turning point after posting a near four-fold rise in quarterly pretax profits and offered its first full-year forecast since the financial crisis began.

JP Morgan and Citi acted as bookrunners on the sale. ($1 = 5.7235 Danish crowns) (Reporting by Kylie MacLellan in London and Ole Mikkelsen at Copenhagen, Editing by Sinead Cruise and Jane Merriman)