UBS Global Real Estate is planning to launch a $1 billion India specific real estate fund this year, having tied up with Mumbai-based real estate developer K Raheja to finance real estate projects in India.

According to reports in the local media, the proposed fund will have a lock-in period of seven years with the option of two one-year extensions. The fund, which will be managed offshore, has already raised nearly $100 million and there are plans to raise up to $400 million in total.

UBS Global Real Estate had invested around $50 billion at March 2007 and has around 360 employees and 13 offices around the world.