Cheung Kong (Holdings), Midland CyberNet and American Express Bank have formed a joint venture to offer referral and consultancy services through online and traditional channels.

The venture, mReferral Corp (HK), initially will provide a mortgage-referral service to customers.

It would later introduce consultancy services on mortgage transfers, instant property valuations, home decoration and other household-related services, Cheung Kong executive director Edmond Ip Tak-chuen said.

Mr Ip said buyers at Laguna Grande, the fourth phase of the Laguna Verde development in Hunghom, would be the first to be able to enjoy the service.

The initial sale of 100 flats at Laguna Grande - a joint venture between Cheung Kong and CLP Holdings - will be launched this month.

Almost 30 financial institutions such as HSBC, Bank of East Asia and ABN Amro Bank had agreed to join the service network, mReferral said.

It will compare mortgage offers of different banks and recommend the best arrangement for individual customers.

Initial capital investment of mReferral, which is equally owned by the three companies, will be HK$30 million.

Revenue will come from the commissions paid by the financial institutions for referral services.

The commission rate is about 5 per cent of the mortgage loan.

Midland CyberNet chairman Freddie Wong Kin-yip said Midland CyberNet's online business was profitable, but it had decided to expand by teaming up with Cheung Kong, which has a strong customer base.

American Express Bank will provide technical support.

Midland CyberNet, which is 80 per cent owned by property agent Midland Realty and 20 per cent by Cheung Kong, provides online services such as auctions, mortgages and insurance.

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