Clayton Holdings Inc., a due diligence, surveillance and specialty consulting provider, has been engaged as the lead consultant in the formation of the Real Estate Financing Co. (REFC), a new residential mortgage company based in Riyadh, Saudi Arabia.
REFC, which is expected to launch operations in 2009, will provide Sharia-compliant, third-party financing for home purchase in Saudi Arabia. Future plans call for additional branches in Saudi Arabia, as well as online development.
Currently, there is little third-party residential financing available in Saudi Arabia, Clayton says. The founding investor group of REFC has experience in the Saudi housing industry, having led construction projects in that market, and sees synergies between its construction businesses and potential growth with the inauguration of a third-party home-finance institution.
Clayton's responsibilities will include sizing the Saudi housing market, creating the strategic business plan, business requirements and implementation plans, conducting an IT/vendor systems assessment, creating necessary operational documentation and performing ongoing implementation assistance. In addition, Clayton will work with the institution to create exit strategies for the loans, including securitization in a Sharia-compliant environment.
Source: Clayton Holdings Inc.