The Saudi Real Estate Refinance Company (SRC), a wholly-owned company of the Public Investment Fund (PIF), has entered into a partnership agreement with Banque Saudi Fransi (BSF), a Saudi joint-stock company, to acquire a portion of its housing finance portfolio.
The deal, which is SRC’s second acquisition of housing finance portfolio from BSF, will offer long-term liquidity to the housing market. It will also exhibit SRC’s role in building a robust secondary home financing market to support loan originators in the Kingdom.
The new agreement of SRC follows other partnerships with banks and real estate finance companies in the Kingdom, as the company seeks to promote stability in the real estate finance market. The company also aims to boost the growth of the real estate finance market by facilitating the provision of more affordable home financing options.
“Our second portfolio acquisition agreement with BSF is a significant step towards cementing the relevance of SRC’s business model and growth. We have illustrated to primary originators in the Kingdom the crucial role we play in developing the housing market and supporting their businesses through liquidity and risk management solutions. Fostering long-term partnerships with originators is a key pillar of SRC’s strategy which aims to build continued relationships with originators to promote affordable housing and diversify financing options for Saudi families. Increasing the proportion of home ownership is in line with SRC’s goal of building a robust secondary market in the Kingdom.”
Mr. Rayan Fayez, managing director and CEO of BSF, said, “As a primary originator, our role is to provide Saudi citizens affordable home finance combined with a great experience, this agreement will allow us to cater to more citizens. SRC has played a vital role in ensuring that the Vision 2030 housing program objectives are being met and we expect ourselves to play a significant role in this by supporting them. At BSF, our aim is to deliver the highest quality to our customers at the best rates and this partnership is a testament to it.”