REFILE-UPDATE 1-London & Stamford raising $363 mln in share sale

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* Offers 215 million shares at 11.6 percent discount

* Says considering move to main LSE market, REIT conversion

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LONDON, July 10 (Reuters) - Property investor London & Stamford Properties (LSP.L) is raising 226 million pounds ($363 million) via a share sale it hopes will provide a competitive edge over bargain-hunting rivals.

The AIM-listed company, set up to exploit heavy discounts in Britain's falling commercial property market, is looking to raise net proceeds of 220 million pounds by selling 215 million new shares at 105 pence each.

The offer price represents an 11.6 percent discount to Thursday's close. The placing and open offer has been fully underwritten by KBC Peel Hunt.

"This fundraising, which has been heavily oversubscribed, is essential to maintain London & Stamford's acquisition capability, enabling us to continue to create value for our shareholders through the acquisition of high quality assets on attractive terms," chairman Raymond Mould said.

London & Stamford was one of the first companies launched to exploit a record slump in British commercial property values since June 2007.

It was followed by Max Property Group (MAXP.L), which floated in May after raising 200 million pounds but a number of other firms including NewRiver Retail have suspended IPO plans amid choppy investor sentiment.

Some 72.5 million of London & Stamford's 215 million new shares have been conditionally placed with institutional and other investors by KBC Peel Hunt and are not subject to clawback, with the remainder available to qualifying shareholders.

The board has subscribed for 3.8 million shares and said it would consider moving the company to the main market of the London Stock Exchange to reflect the increased size and scope of its business. It also said it was mulling conversion into a real estate investment trust (REIT) in due course.

London & Stamford has bought more than 750 million pounds of British real estate since its flotation, including a 50 percent stake in the Meadowhall Shopping centre in Sheffield in joint venture with GreenPark, formerly Cavendish Limited. (Reporting by Sinead Cruise; Editing by Dan Lalor) (See www.reutersrealestate.com for the global service for real estate professionals from Reuters)