Corporate Investor Opportunities

Guidelines

Financing for Direct Acquisition
Malaysia has a range of local and international banks that offer financing options. In general, the margin of financing for commercial properties is 10% - 20% lower than the average 70% of property value offered for residential properties. The final sum is negotiable.

Financing for Development
Developers can obtain a bridging loan from financial institutions (bridge-financier) to bridge-finance the construction costs paid out pending receipt of progressive payment from the house buyers/end-financiers.

Sell-And-Build Approach in Malaysia
The common practice in place is for developers to sell their properties before commencement of construction. Under the Sell-And-Build (SAB) approach, end buyers part-finance the developer's costs during the construction period via individual end-financing.

Conversely, under the Build-To-Sell (BTS) approach, the developer does not receive progressive payment from end-financiers as mentioned above and therefore requires higher financing from the bridge-financier in order to finance the project.