Portman Holdings LLC and Ambit Holdings Pvt. Ltd. plan toestablish an estimated US$500 million real estate fund, DealStreetAsiareported, citing two unnamed sources familiar with the deal.

The U.S. property developer and Indian investment bankare in discussions to set up the fund, which will mainly invest in medium-sizedprojects.

One of the sources reportedly added that the 50/50joint venture will raise money from third parties for the fund.