Cadmus, the Sussex-based corporate finance group, is to consolidate and expand its successful Property Syndication arm.

It offers opportunities for investment in residential developments across the UK.

It has delivered high rates of return during the two years it has run as a pilot scheme.

David Wilson, who devised the scheme, is head of the Sayers Common-based group.

He said: "The service, which we believe is unlike any other in the UK, focuses on property rather than business projects.

"With the jittery state of the stock market, low interest rates and trading conditions difficult generally, people are looking for other investment opportunities.

"The property market continues to gain strength, so bricks and mortar are an attractive and relatively short term alternative.

"The development projects we select will typically produce return on capital annualising at an average 25 to 30 per cent, made up from a share of the profits earned on the sale of the property and interest."

Builders and developers had little trouble in obtaining up to two-thirds of the finance necessary for a particular project.

Raising the final third could present difficulties and was where property syndication was able to help.

"We have found a lot of demand for funding from a number of developers.

"We arrange for small syndicates to get involved refurbishment and new-build residential developments."

The scheme was not operated as a collective investment fund or a share scheme.

Clients lent money to finance the completion of a specific project on a deal-by-deal basis.

Mr Wilson said: "There are no tax breaks, just an excellent return on capital. We negotiate the deal, structure it, make sure there are legal safeguards place and the paperwork is order.

"A new, single-purpose limited company, which effectively creates a ring fence for our clients' funds, is then formed.

"The developer's bank and the clients commit to lend the new company.

"As an additional safeguard, a reputable firm of solicitors handles all the funds involved."

On completion of the project and sale of the property, investors' loans are repaid together with their share any profits.

Before any money is passed to the developer, a team of professionals put together by Cadmus carry out a thorough audit of the planned project. The team includes experienced lawyers, independent chartered accountants, qualified property advisers and building and interior design specialists.

Contact Cadmus on 01273 835455 for details.