KUALA LUMPUR: Malaysia Building Society Bhd (MBSB) targets to increase its corporate loan disbursement to RM3.2 billion by end of next year from the RM1.2 billion that was disbursed to date this year.
The non-banking financial institution's current loan disbursement excludes its Personal Finance-i scheme.
Chief executive officer Datuk Ahmad Zaini Othman said MBSB expects its corporate business division to contribute more to its revenue by next year.
He said MBSB's retail business is contributing heavily to its revenue, compared with the corporate business, with a ratio of 70:30.
However, by the end of 2014, Ahmad Zaini said the company targets the ratio to change to 60:40 for retail and corporate business segments.
"The corporate property financing business is something that we are familiar with and we do need to diversify our portfolio," he said after signing an agreement with Gambier Sanctuaries Sdn Bhd yesterday.
MBSB's corporate business includes financing for property development projects and commercial properties as well as corporate loans while its retail business includes personal financing and home financing.
MBSB signed an agreement with Gambier Sanctuaries for RM155 million in financing facilities for a mixed development consisting of residential apartments and commercial units at Bukit Gambier in Penang.
Under the deal, MBSB will finance the construction and development works, land purchase and other related development consideration, which includes site clearing, earthworks, piling and infrastructure works.
"This deal marks another collaboration with a major developer in Penang as MBSB continues to increase its participation in financing property development projects on the island, as Penang remains a favourite hotspot for real estate and property investors as well as homebuyers," said Ahmad Zaini.
He added that the company is also allocating up to RM200 million for end financing of the project.
Gambier Sanctuaries managing director Tan Siaw Jiun said the project, which is expected to have a gross development value of RM600 million, will start by mid-2014 and completed by 2017.
She added that the project, which will be built on a 3.2ha prime freehold site, will comprise about 500 luxury condominium unis, 300 medium-cost apartments and 20 retail shops.