In a significant move for the real estate finance industry, the Saudi Real Estate Refinance Co. (SRC), which is fully owned by the Public Investment Fund, has acquired a real estate loan portfolio from Al Rajhi Bank valued at more than SAR 5B ($1.33B).
The deal, which is the largest of its kind, was announced by the mortgage finance company in a statement released on Sunday. SRC noted that the acquisition is part of its ongoing efforts to promote the growth of the residential real estate finance sector.
Al Rajhi Bank, which is the world’s largest Islamic bank in terms of mortgage assets and market capitalization, is the second largest lender in Saudi Arabia.