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PIF-owned Saudi Real Estate Refinance Company (SRC) signed an agreement to acquire a SAR 1 bn mortgage portfolio from Bidaya Finance, marking the largest transaction of its kind among mortgage companies, according to a press release.
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The pitch: SRC’s CEO emphasized the agreement’s role in improving liquidity and stability, while Bidaya’s CEO highlighted its contribution to innovative financing and the securities market. The agreement aims to boost homeownership, strengthen the real estate finance market, and expand refinancing opportunities.
What we don’t know: No details were made available on the terms and timeline for the portfolio transfer. The structure of the portfolio and its target market also remain unclear.
REMEMBER: SRC inked an MoU with Saudi Mortgage Guarantees Services Company (Damanat) in October that would see the latter provide coverage for the mortgage portfolios owned by the fund. The company also plans to issue its first USD-denominated bond this year, following SAR 20 bn in bonds sold over the past three years.
