HSBC, Europe's biggest bank, plans to raise $500-600 million for an India-focused real estate fund, the Economic Times newspaper reported on Friday, citing sources close to the development.
A spokeswoman for the bank in Mumbai could not comment immediately on the report.
The newspaper quoted an industry source as saying that the bank was keen to get a slice of the real estate market in India although the fund would also make small investments in other sectors.
India's property sector has been buzzing since early 2005, when rules on inbound investment in the construction industry were eased, prompting an influx of private equity funds such as those run by Morgan Stanley and Citigroup.
Last month, the Carlyle Group said it hoped to seal its first property deal in India this year.
In June, real estate developer DLF Ltd raised $2.3 billion from India's biggest-ever IPO, while Emaar MGF Land, in which Dubai's Emaar Properties holds about 40 percent, is awaiting the Indian market regulator's nod for its IPO, which may raise up to $1.5 billion.
Source: Reuters