J P Morgan Property Fund, which has mobilised over $300 million to focus on Indian real estate, is going to set up a residential project in Chennai, at an estimated cost of Rs 400 crore (Rs 4 billion).

Chennai-based realty developer Arihant Foundations and Housing will develop the residential property, which will be spread over 45 acres of land, in joint venture with J P Morgan.

The company's board of directors authorised on Wednesday its entry into the joint venture.

The JV would have 50:50 equity participation from both the partners, Arihant Foundations informed the Bombay Stock Exchange.

The India property fund targets key economic centres in the country including Mumbai, Bangalore, Chennai, Kolkata, Hyderabad and New Delhi among others, to develop projects along with local partners.

Last year, J P Morgan Asset Management had announced the mobilisation of around 360 million dollars from institutional and high net worth investors from US, Asia, Europe and West Asia to invest in the booming Indian real estate space.