SRC signs second portfolio purchase pact with Banque Saudi Fransi

Executives at the agreement signing ceremony

Saudi Real Estate Refinance Co. (SRC), wholly-owned by the Public Investment Fund (PIF), signed a partnership agreement with Banque Saudi Fransi (BSF) to refinance part of its housing finance portfolio.

The agreement is an extension of the ongoing cooperation between the two sides, as part of a series of partnership agreements with several banks and real estate finance companies in the Kingdom to promote the growth and stability of the residential mortgage market.

It further aims to enable Saudi families to obtain affordable and low-cost residential finance, contributing to a 70% increase in residential ownership by 2030, Saudi Press Agency (SPA) reported.

Fabrice Susini, Chief Executive Officer (CEO), SRC, said the agreement is part of an important step to consolidate the company's business model and promote its growth, pointing out that the company is working with real estate financers in the Kingdom to highlight its vital role in developing the local housing market through liquidity and risk management solutions. 

He added that strengthening long-term partnerships with real estate financers is a key pillar of the company's strategy to build ongoing relationships with finance agencies to provide affordable housing and diversify financing options for Saudi families, contributing to increasing the proportion of homeownership in line with the company's goal of building a robust secondary market in the Kingdom.

In April 2019, the company signed an agreement with BSF to purchase residential real estate finance portfolios, providing cash liquidity of the value of the portfolios purchased to the bank to help it grow and expand residential mortgage finance by recycling the liquidity generated from sale, Argaam reported.