OSLO, April 29 (Reuters) - Shares of Norway's Public Property Invest, partly owned by indebted Swedish real estate group SBB, fell 2.8% in its debut on the Euronext Oslo stock exchange on Monday.

The initial public offering (IPO) was designed to cut PPI's debt and comes as part of a wider restructuring of the SBB group, which is scrambling to overcome soaring interest rates that have hit many European property companies.

PPI last week sold 105 million new shares at 14.50 Norwegian crowns each, at the bottom of the IPO's proposed range of between 14.50 crowns and 21 crowns per share.

The transaction increased the overall number of shares to 208.6 million, valuing the company at 3.03 billion Norwegian crowns ($275.15 million) before Monday's share move.

The stock fell 2.8% to 14.10 crowns at 0713 GMT.

($1 = 11.0123 Norwegian crowns) (Reporting by Terje Solsvik, editing by Louise Rasmussen)