Dolmen Corporate Finance has acquired a €27 million development property in Brussels on behalf of its clients.

The firm has raised about €7.5 million in equity from about 24 clients for the deal, with the remaining consideration provided by bank debt.

Individuals contributed sums between €150,000 and €500,000 for the acquisition, which Dolmen marketed as an investment offering steady returns.

The Foncière du Parc property is located in the European quarter of Brussels and is scheduled to be fully developed by September 2009. At that stage, it is expected to comprise almost 8,000sq m (86,111 sq ft) of residential space, 625sq m (6,727 sq ft) of retail space and a significant terrace and garden area. The site was empty at purchase.

In a memorandum relating to the deal, Dolmen notes that the Belgian property market has experienced "steady price growth, unlike the boom in the UK, Spain and Ireland". Belgium has a low inflation rate of just 2 per cent

The firm has projected a return of 20 per cent on the investment, based on an investment horizon of five years. In reality, however, Dolmen is likely to offer investors a cash exit in two to two-and-a-half years - with a return in the mid-20s - on the assumption that some units could be sold before they have been completed.

This would be based on apartments in the scheme selling at €3,600 per sq m for an average two-bed property.

Apartments in the same area are selling for up to €4,000 per sq m today.