The Saudi real estate sector witnessed on Monday the conclusion of the first agreement to refinance a Saudi real estate portfolio, with the Saudi Real Estate Refinance Company (SRC) announcing a partnership deal with the Real Estate Development Fund (REDF) to refinance a real estate portfolio worth 10 billion riyals ($2.7 billion).
The agreement was signed by REDF CEO Mansour bin Madi, and the CEO of SRC Fabrice Susini.
A statement issued on Monday said that the agreement supports REDF by “enhancing its financial stability” and aims to boost liquidity in Saudi Arabia’s home financing market, cut the cost of home financing for Saudis and support the country’s housing objectives.
In this regard, Susini said: “The agreement aims to increase the supply of home loans for affordable housing that aligns with our vision to develop a robust secondary home financing market for the benefit of the primary housing market in the kingdom.
“Therefore, the agreement with REDF positions us as a catalyst in achieving the housing goals stipulated by Vision 2030,” he added.
Bin Madi, for his part, stated that the agreement comes within the framework of the National Development Fund’s strategy that supports the goals and future plans of the Real Estate Fund to provide various financing and housing options in the residential real estate financing market.
He added that the Fund provided more than 560,000 subsidized real estate loans from June in 2017 until the third quarter of this year as part of the subsidized loan program.
