Saudi Refinance signs SAR 250 mln deal with Bank Aljazira to buy real estate financing portfolio

Saudi Real Estate Refinance Co. (SRC), which is fully owned by the Public Investment Fund (PIF), signed on Tuesday an agreement with Bank Aljazira to acquire a real estate financing portfolio for the total value of SAR 250 million.

The agreement includes potential acquisitions of real estate portfolios in the future.

SRC aims, through purchasing real estate refinancing portfolios from banks, to pump more liquidity into the market which contributes to reducing the cost of real estate financing for Saudi citizens.

The chief executive and managing director of SRC, Fabrice SuSini, said that the agreement aims to support Saudis to own properties in line with Saudi Vision 2030’s objective related to increasing housing ownership to 70%.

The CEO and managing director of Bank Aljazira, Nabil Al-Hoshan, said in turn that the bank will keep up the effort to strengthen its position in the real estate financing market, develop the Kingdom’s financing system, as well as provisioning innovative financing solutions.

Established in 2017, SRC aims to refinance 20% of the real estate loan market in the Kingdom, which is expected to grow to SAR 800 billion during the next 10 years.