REDF, SRC sign agreement to refinance first govt real estate portfolio worth SAR 10 bln

Logo of Real Estate Development Fund (REDF)

Real Estate Development Fund (REDF) and Saudi Real Estate Refinance Co. (SRC) signed an agreement to refinance the first government real estate portfolio worth SAR 10 billion in several phases.

The agreement aims to enhance the financial sustainability of the fund and the real estate finance market in the Kingdom to achieve the goals of the Housing Program, one of Vision 2030 programs, to increase the proportion of residential ownership of Saudi families to 70% by 2030, REDF said in a statement.

Mansour Bin Madi, CEO of REDF, said the agreement is part of the National Development Fund's (NDF) strategy to support REDF’s future objectives and plans to provide more financing and residential solutions in the mortgage market to meet the needs and requirements of “Sakani “program beneficiaries within the subsidized mortgage loan program.

He noted that this agreement represents a strategic opportunity that reflects the fund's commitment to provide monthly housing support to subsidized loan beneficiaries and enable housing for future generations.

REDF offers a 100% interest supported loan of up to SAR 500,000 through financing and housing solutions to “Sakani” program beneficiaries and provides several housing options, including self-construction, purchase of ready-made or under-construction housing units, through more than 18 approved financing entities. It has provided more than SAR 31 billion in monthly support to more than 560,000 beneficiaries from June 2017 until the end of the third quarter of 2021.