Saudi Arabia CBC Signs Refinancing Agreement for $ 2.7 Billion Real Estate Portfolio, Real Estate News, ET RealEstate

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DUBAI: The Saudi Real Estate Refinance Company (SRC) signed a partnership agreement with the Real Estate Development Fund (REDF) to refinance a real estate portfolio worth 10 billion riyals ($ 2.7 billion), a the CBC said in a press release.

REDF provides soft loans to Saudi homebuyers and the SRC, 100% owned by the sovereign wealth fund, the Public Investment Fund (PIF), is the Saudi equivalent of the US mortgage finance firm Fannie Mae.

Founded in 2017, SRC purchases real estate finance portfolios from local banks and real estate finance companies and aggregates them into Sharia-compliant mortgage-backed securities for sale to national and international investors.

The agreement supports REDF by “improving its financial stability” and aims to increase liquidity in the real estate finance market in Saudi Arabia, reduce the cost of real estate finance for Saudis and support the goals of housing of the country, according to the statement.

“Therefore, the agreement with REDF positions us as a catalyst to achieve the housing goals stipulated by Vision 2030,” which is the kingdom’s plan to diversify the economy away from oil, said Fabrice Susini, CEO of SRC.

Vision 2030 aims to increase the percentage of Saudi families who own homes to 70% by 2030. Susini told Reuters in March that about 62% of Saudis own homes.

In September, the SRC reached a 2 billion riyal deal to refinance the portfolio of a housing program, Masakin, supported by the General Social Insurance Organization (GOSI).


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