Real Estate

The Saudi Real Estate Refinance Company (SRC), a subsidiary of the Public Investment Fund (PIF), has signed a Memorandum of Understanding (MoU) with King Street Capital Management in New York City. The agreement, signed on Wednesday, aims to foster strategic collaboration between the two entities in the real estate finance sector. The signing ceremony was attended by His Excellency Majed bin Abdullah Al-Hogail, Minister of Municipalities and Housing and Chairman of SRC, as part of his official visit to the United States.

The MoU was signed by Majeed Fahd Al-Abdul Jabbar, CEO of SRC, and Brian J. Higgins, Managing Partner of King Street. This agreement is a key component of the Minister’s visit, which focuses on enhancing cooperation between Saudi Arabia and the United States in urban development, construction, finance, and real estate sectors.

The primary objective of the MoU is to diversify liquidity sources to support the stability of the secondary real estate finance market in Saudi Arabia. This initiative is expected to foster economic growth and attract foreign investments, contributing to the housing program targets outlined in the Kingdom’s Vision 2030. The MoU also emphasizes the development of innovative financial instruments, including the securitization of Sharia-compliant residential real estate finance portfolios, tailored to meet the standards of global investors.

Majeed Al-Abdul Jabbar, CEO of SRC, highlighted the significance of the MoU, stating that it aligns with the company’s mission to support the housing system and the Financial Sector Development Programme by providing necessary liquidity, diversifying financing options for the private sector, and creating new investment opportunities. He emphasized that these efforts are crucial to achieving the housing program’s goal of increasing Saudi homeownership rates to 70% by 2030, while also enhancing the stability and attractiveness of the Saudi market to both local and international investors.

Brian J. Higgins, Managing Partner of King Street, expressed his enthusiasm for the partnership, noting that this initiative represents a milestone in developing Saudi Arabia’s capital markets. He emphasized that the program will attract international investors seeking high-quality Saudi securities, benefiting homeowners and the broader banking system, and supporting the goals of Vision 2030.

The Saudi Real Estate Refinance Company, established in 2017 by the Public Investment Fund, plays a pivotal role in supporting the housing system by injecting liquidity into the residential real estate finance market. The company, licensed by the Saudi Central Bank, ensures the market’s stability and continuity. King Street Capital Management, founded in New York in 1995, is a global alternatives platform with expertise in credit, restructurings, and real estate investments.

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