Partnership Announced for Advanced Mortgage Finance Platform in Saudi Arabia

A New Era in Mortgage Finance in Saudi Arabia

In a landmark event held under the patronage of His Excellency Mr. Majed bin Abdullah Al-Hogail, the Minister of Municipal and Rural Affairs and Housing, a significant partnership was announced for developing an advanced mortgage finance platform through a tripartite agreement. This strategic alliance includes the Real Estate Development Fund (REDF), the Saudi Real Estate Refinance Company (SRC), and LCM Partners, a prominent European private credit investment firm. This collaboration is designed to enhance the housing finance ecosystem in Saudi Arabia while being congruent with the goals outlined in Saudi Vision 2030.

Details of the Partnership

The agreement was formally signed by key figures in the respective organizations: Mr. Loaye Al-Nahedh, CEO of REDF; Mr. Majid bin Fahd Al-Abduljabbar, CEO of SRC; and Mr. Paul Burdell, CEO of LCM Partners. Together, they aim to create a world-class asset management platform that provides independent mortgage services, representing a leap forward in the financial management of real estate in the Kingdom.

The collaboration seeks to merge the operational efficiency of data-driven solutions within the housing finance sector, thereby improving the accessibility and quality of housing for Saudi families. The partnership bolsters Saudi Arabia's commitment to sustainable housing development, contributing to fulfilling the aspirations of its citizens.

Goals Aligned with Vision 2030

This initiative is more than just a business deal; it signifies a commitment to empowering families to secure decent housing while establishing a more resilient financial framework in the real estate sector. As part of their long-term strategy, LCM Partners will become a shareholder in the newly formed National Support Company for Finance Services through the issuance of new shares.

His Excellency Mr. Al-Hogail remarked, "This partnership represents a new phase for the housing finance ecosystem and highlights an effective integration between public and private sectors. It showcases the attractiveness of the Saudi market for international investors while affirming trust in the strength and resilience of the Saudi economy."

Comments from Leadership

Mr. Loaye Al-Nahedh emphasized that the collaboration would expand the Fund's efforts to promote financial viability and homeownership opportunities, creating a sustainable economic growth model. In a similar vein, Mr. Majid Al-Abduljabbar underscored the importance of this agreement in developing complementary financing products and enhancing service quality in the Saudi real estate market.

Bruce Flatt, CEO of Brookfield Asset Management, commented on the initiative, expressing pride in their continued partnership with LCM Partners, stating, "Saudi Arabia is one of the most dynamic and forward-looking economies in the world, and this initiative aligns perfectly with Brookfield’s commitment to long-term investment in the region’s financial and real estate infrastructure."

Mr. Burdell also shared his optimism regarding the partnership, reiterating the long-standing trust and ambition shared with Saudi Arabia. He mentioned that the current partnership marks the beginning of an advanced service platform that will facilitate the next phase of growth for credit and real estate markets in the Kingdom.

About the Companies Involved

LCM Partners, established in 1999, has been a member of Brookfield since 2018 and specializes in credit investment, asset management, and economic intelligence. With over two decades of experience, they are recognized as pioneers of consumer credit and SME financing in Europe. Brookfield Asset Management Ltd. is a leading global alternative asset manager with a diverse portfolio exceeding $1 trillion across various sectors, including infrastructure and real estate. Their focus on long-term assets positions them as a resilient player in the financial landscape.

This new partnership is poised to significantly impact the housing finance sector in Saudi Arabia and foster a robust ecosystem for homeownership, driving forward the ambitions of the Kingdom's Vision 2030.