The Saudi Real Estate Refinance Company (SRC), a Public Investment Fund (PIF) company, signed a memorandum of understanding (MoU) in New York City today with King Street Capital Management. The agreement aims to foster cooperation and strategic partnership between the two parties in the real-estate finance sector, under the patronage and in the presence of Minister of Municipalities and Housing and SRC chairman Majed bin Abdullah Al-Hogail, SRC said in a news release.
The MoU, signed by SRC chief executive Majeed Fahd Al-Abdul Jabbar and King Street managing partner Brian J. Higgins is part of the minister’s official visit to the United States, which aims to explore ways to enhance partnership and cooperation between the two countries in the sectors of urban development, construction, building, finance, and real-estate development.
The MoU aims to diversify liquidity sources to support the secondary real-estate finance market’s stability, foster economic growth, and attract more foreign investments to th
e Saudi market. This would contribute to achieving the housing program targets outlined in the Kingdom’s Vision 2030. The memorandum also emphasizes the development of innovative financial instruments, such as the securitization of Sharia-compliant residential real-estate finance portfolios. SRC is working to adapt these instruments to meet the standards of specialized global investors.
SRC’s Jabbar confirmed that the signing of the MoU with King Street is part of efforts to play a key supporting role in the housing system and the Financial Sector Development Program by providing the necessary liquidity in the real-estate finance market, diversifying financing options for the private sector, and creating a new asset class for investors. These efforts would contribute to achieving the housing program’s goal of increasing the homeownership rate among Saudi citizens to 70% by 2030. Additionally, the agreement supports the growth and stability of the Saudi market while attracting both local and international in
vestors.
King Street’s Higgins expressed his pleasure with the partnership and cooperation with the Kingdom of Saudi Arabia in launching the first program of its kind in the Saudi market. He noted that the initiative will contribute to developing local capital markets and creating a suitable structure to attract international investors who seek to enhance their portfolios with high-quality Saudi securities. He also highlighted that the program will benefit homeowners and the banking system, aligning with the goals of the Kingdom’s Vision 2030.
The SRC, established in 2017 by the Public Investment Fund, is a key government initiative aimed at achieving the housing program targets under the Kingdom’s Vision 2030. The company serves as a fundamental pillar in supporting the housing system by injecting liquidity into the residential real-estate finance market, ensuring its continuity and stability.
The company also has obtained a license from the Saudi Central Bank to operate in the field of real-estate ref
inancing.
King Street Capital Management is a global alternatives platform founded in New York in 1995. The firm invests across public and private markets with expertise in credit, restructurings, bankruptcies, rescue financings, corporate and asset-based lending, structured credit, and real estate.
Source: Saudi Press Agency