With a view to reducing the cost of financing to citizens, the Saudi Real Estate Refinance Co – wholly owned by the Public Investment Fund – and the Saudi Public Pension Agency, has signed an agreement to buy a mortgage portfolio worth over 3 billion riyals ($ 799.8 million), this agreement is the largest in the residential real estate refinance market in the Kingdom, in the presence of His Excellency the Minister of Housing and Chairman of the Board of Directors of the Saudi Real Estate Refinance Company, Mr. Majid bin Abdullah Al-Hogail.
“The deal provides liquidity to the real estate financing market, which in turn is expected to lead to lower prices and an increase in the number of mortgage originations – leading to Saudi Real Estate Refinance Company’s goal to improve homeownership rates in The kingdom”. Fabrice Susini, CEO of SRC, Said in a statement.
He added: “The agreement offers an opportunity to refinance the assets of the real estate finance sector by selling financing portfolios to the SRC, which enhances attracting investors to the market and encouraging customers in the housing finance sector to continue to provide more subsidized financing solutions to increase the supply and demand for housing units for the continuity Sector growth and cost reduction for Saudi families. “
He pointed out that the agreement contributes to achieving the goals of the Saudi Vision 2030 related to the housing sector, which aims to increase homeownership to 70%.
“ This agreement will help achieve the goals of the institution by providing solutions for subsidized real estate financing to meet the needs of citizens, and will also help the liquidity in the market and help us provide more mortgages to people to buy homes ,” Mohammed Al Nahhas, governor of PPA, said.
The Saudi Real Estate Refinance Co started its work in 2017 with the aim of improving the mortgage finance market in Saudi Arabia, and thanks to this agreement it has become one of the main owners of real estate finance portfolios in the Kingdom, and SRC aims to pump more than 20 billion Saudi riyals into the sector Financing by buying a mortgage portfolios, with the goal of achieving a 20% refinance of home financing.