Riyadh, The Saudi Real Estate Refinancing Company, an affiliate of the Public Investment Fund, has signed a strategic agreement with the Saudi British Bank (SABB) to buy residential real estate finance portfolios, through which the company will provide liquidity for the portfolios purchased for the Bank, through which recycling of liquidity resulting from the sales, would inject liquidity into the Saudi housing finance market.
In a press release announced here today, the company said that the agreement is part of the agreements signed by the company with other local banks and specialized mortgage providers, in the Kingdom, to purchase real estate finance portfolios worth SR750 million.
This agreement is a clear demonstration of the company's commitment to inject more liquidity to enable financiers to expand into the residential real estate finance sector and to reduce the gap between long-term assets and short-term liabilities, a fact that shall have a positive impact on the citizens, through the lowering the cost of finance for owning a property.
The rationale behind the company's role is to ensure that there is a secondary mortgage market, in which lenders are provided with more financing and liquidity, enabling growth in the housing finance sector.
Source: Saudi Press Agency