Mumbai:

The seven-year real estate fund will have pension funds, insurance companies and government organisations as investors, Dinesh Chandiok, managing director of Tata Realty, told reporters on the sidelines of the US-India CEO Forum.

TRIL, a 100 per cent subsidiary of Tata Sons, hopes to close the fund in two weeks'' time.

"There may be some diversion of funds into the stock market, but the impact on realty investments may not be much," Chandiok said.

The booming stock markets and capital inflows might not have much of an impact on realty investment, Chandiok said, adding, the demand-supply gap in the industry still existed, and realty prices may witness a steady rise.

Tata Realty focuses on infrastructure projects related to airports, urban infrastructure, roads, bridges, SEZs and logistics parks, among others.

TRIL was set up to serve as the group''s real estate and infrastructure development arm. Currently estimated at $14 billion, real estate and infrastructure has emerged as a key sector in India''s economic growth.

Growing at 30 per cent annually, it is India''s second-largest employer after agriculture, and supports more than 200 ancillary industries. Slated to touch $102 billion by 2017, as per government estimates, the sector in the next five years requires $450 billion in investments based on the ''public private partnership'' (PPP) approach and other funding methods.

TRIL focuses on infrastructure projects typically having long gestation and life cycles. The company takes up large, state-of-the-art projects and uses the best industry practices and cutting-edge technologies.

The group takes up projects that make a difference to the local community, provide employment opportunities and create a quantifiable impact at the national level.