Saudi Real Estate Refinance eyes acquisition of SAR 20 bln mortgage portfolios: official

Saudi Real Estate Refinance Co. (SRC) is looking to refinance SAR 20 billion through purchasing mortgage portfolios to provide liquidity and maintain market stability, Abdulrahman Al-Thukair, Head of Business Development, told Argaam in an exclusive.

The company adopts its own credit policy, when buying mortgage portfolios to ensure their credit worthiness. After purchasing refinance agreements, SRC issues sale sukuk to investors inside and outside the Kingdom.

On July 19, SRC, a subsidiary of Public Investment Fund (PIF), signed an agreement with the Public Pension Agency (PPA) to acquire mortgage portfolio worth more than SAR 3 billion, Argaam reported.

“The mortgage portfolio of Al Ra'idah Investment Company (RIC), the Public Pension Agency’s investment arm, reached almost SAR 5 billion, of which we bought the majority at SAR 3 billion,” Al-Thukair added.

SRC is mulling the acquisition of various portfolios from banks and mortgage companies, Al-Thukair noted, concluding that the new deals will be unveiled this year.