March 24 (Reuters) - Swedish real estate group SBB said on Sunday it would buy back debt worth 407.7 million euros ($441 million) for 162.7 million euros, a discount of 60% compared with the debt's original value.

The buyback will trim the struggling property company's significant debts, which amounted to some 62 billion Swedish crowns ($5.9 billion) at the end of last year.

SBB last week offered to buy back more of its debt, seeking to reassure investors about its finances amid a property market downturn.

"To reduce SBB's indebtedness, debt needs to be repurchased, which can occur at a faster pace when bonds are repurchased below par value. The voluntary tender generates equity and provides better conditions for successfully developing the business. This benefits the company's stakeholders," said CEO Leiv Synnes to Reuters in a written statement. ($1 = 0.9253 euros, 10.5475 Swedish crowns) (Reporting by Greta Rosen Fondahn and Marie Mannes; Chandni Shah in Bengaluru, Editing by Hugh Lawson)