Saudi Real Estate Refinance Company Buys Mortgage Portfolio from Banque Saudi Fransi

Saudi Real Estate Refinance Company (SRC), a company owned by the Public Investment Fund (PIF), announced the signing of an agreement to acquire a residential real estate financing portfolio from Banque Saudi Fransi, marking the third mortgage portfolio acquisition between the two entities, according to a press release reported by Zawya platform.

The signing ceremony took place under the patronage of the Minister of Municipalities and Housing and Chairman of the Board of Directors of Saudi Real Estate Refinance Company, Majed bin Abdullah Al-Hogail, and in the presence of the Chairman of the Board of Directors of Banque Saudi Fransi, Mazin Al-Romaih. The agreement is an extension of the ongoing cooperation between both parties in the residential real estate financing market.

Majeed bin Fahad Al-Abduljabbar, CEO of SRC, stated that the agreement reflects the strength of the strategic partnership and mutual trust between the two parties. He added that continued collaboration with financing institutions provides liquidity and enables them to expand residential real estate financing, while supporting the growth of the secondary mortgage market and raising market efficiency and sustainability.

For his part, Bader bin Hamad Al-Salloom, CEO of Banque Saudi Fransi, said that the agreement is an extension of the strategic partnership with SRC and underscores the shared commitment to supporting a more efficient and sustainable mortgage financing market. Saudi Real Estate Refinance Company was established in 2017 by the Public Investment Fund and licensed by the Saudi Central Bank. It continues to work with its partners to boost the efficiency of the real estate financing ecosystem, expand the investor base, and develop the secondary market in line with the objectives of Saudi Vision 2030.

What Do These Terms Mean?

Real Estate Refinancing: The purchase of mortgage loan portfolios from banks by a specialized company, allowing banks to recover liquidity and re-lend to new buyers instead of tying up funds in long-term loans.

Secondary Mortgage Market: A market where existing mortgage loan portfolios are traded between financiers and investors, and its expansion increases the supply of residential financing.

Public Investment Fund: Saudi Arabia's sovereign wealth fund, acting as the state's investment arm and holding stakes in major companies and projects domestically and internationally.