UPDATE 1-Gecina ups divestment target, says finances soud

* Raises divestment target to over 700 mln euros

* Needs no new finance sources for 2009-1010 period (Adds comments on banking covenant)

PARIS, July 3 (Reuters) - French real estate group Gecina (GFCP.PA: Quote, Profile, Research) said on Friday that it was raising its 2009 divestment target to more than 700 million euros from 600-700 million previously and said it had sold office property for 98 million.

Gecina said it had now sold 226 million euros of property in the first half and with the raised divestment plan it did not need to tap any new sources of financing for the 2009-2010 period.

Last month, it announced a 100 million euro capital increase after the annual general meeting of shareholders backed a new supervisory board that includes five representatives of Metrovacesa (MVC.MC: Quote, Profile, Research) of Spain, up from one. Metrovacesa has a stake of some 27 percent in Gecina.

Gecina said it had nearly 300 million euros in undrawn credit lines and immediately available facilities.

"Despite the impact of the value adjustment and the consolidation of Gecimed on the group's debt, the ratios set out in the banking covenants are complied with," the company said.

It said the repayments in 2009 and 2010 primarily concerned the redemption of the balance on the 2010 bonds for 540 million euros.

"In this way, the Group is approaching the financing of its repayments for 2011 and 2012 under the best conditions," the company said. (Reporting by Marcel Michelson; editing by David Cowell and Karen Foster)