Goodbody Stockbrokers has raised £17 million (€24.8 million) from a group of private investors to fund a range of high-profile property investments in the North.
The broker will initially invest £7.25 million in the £90 million Bridgewater Park outlet shopping mall at Banbridge in Co Down, 26 miles south of Belfast.
Additional funds will subsequently be dedicated to residential and other commercial developments in the North, with Goodbody hoping to raise a total of £30 million from its clients in the new NI Property Fund.
The fund's launch is part a wider attempt by Goodbody to increase its involvement in the North. Last year, the firm undertook a body of research that showed the North has been the fastest "regional economy" in the UK over the past decade.
In the case of the 100-plus acre Bridgewater Park development, senior project funding is coming from Ulster Bank, with mezzanine finance provided by UK commercial property group Land Securities.
Mezzanine finance is a financial instrument that pays lenders an above-average yield but also allows them to convert their loans into company equity by means of warrants.
David Clarke from Goodbody's property team said the firm had "readily" raised the £7.25 million needed for Bridgewater from a "broad range" of investors.
So far, the money has largely come from Goodbody's clients in the Republic, with a smaller amount coming from customers of First Trust in the North. The minimum subscription for the NI Property Fund is £150,000, although most investors have advanced about £200,000.
Goodbody judges that if all goes to plan, investors could double their money over five years. Those putting in euro will, however, face the exchange-rate risk associated with sterling.
Goodbody expects to invest the money in the fund over three years, with a follow-on investment to last for four years. The fund could then be extended for another two years if all directors agreed.
No provision has been made for a dividend, although some capital may be returned after the third year.
Goodbody will also create a "grey market" for shares in the fund, which will be liable for capital gains tax at 20 per cent if sold.
