# First Avenue swaps funds, MSGA sells to Sakan, SRC issues RMBS

> Three Saudi moves from 13 to 15 October: a Nomu fund swap worth SAR 130.96M, a SAR 13.47M housing sale and a second rated mortgage-backed issue.

Saudi deal log, 15 Oct 2026. By Ali Asif. News and my own view, not investment advice.

## My take

All three sit in housing and real estate, and each is about turning a fixed asset into something that moves. A Nomu developer consolidates into one fund, a listed company sells units in bulk to a housing body, and SRC adds published ratings to a securitisation market that is only a year old. None is large, but the plumbing is getting better.

## What moved

1. **First Avenue exits La Perle fund and lifts its Al Shati stake to about 81.6%** (First Avenue for Real Estate Development, M&A): Amount: SAR 130.96M. Investors: First Avenue for Real Estate Development, Awj Real Estate Development and Investment. First Avenue gives Awj its 38.6% of La Perle Real Estate Fund and receives Awj's 48.9% of Al Shati Real Estate Fund plus SAR 6.35M in cash. The agreement is signed and completion is pending. [Primary source](https://www.argaam.com/en/article/articledetail/id/1944305)
2. **MSGA Investment signs a SAR 13.47M sale of residential units to Sakan** (MSGA Investment, M&A): Amount: SAR 13.47M. Investors: Developmental Housing Foundation (Sakan). The units are 25% of the residential units in the MSGA 30 project in Riyadh's Al-Safa district. Ownership transfers within 60 days of signing. [Primary source](https://www.argaam.com/en/article/articledetail/id/1943863)
3. **SRC launches its second residential mortgage-backed securities issuance** (Saudi Real Estate Refinance Company, Sovereign and funds): SRC, a PIF company, describes it as the first domestic RMBS with published credit ratings from Moody's Ratings and Fitch Ratings. The issue size was not stated. [Primary source](https://tradearabia.com/News/487952/Saudi-PIF-unit-launches-second-residential-mortgage-backed-securities-issuance)

A modest few days for headlines, and the three deals that did land all sit in Saudi real estate. I'd rather cover three confirmed moves than pad this with rumour, so here they are as the filings and releases state them.

## First Avenue and the Awj fund swap

First Avenue, listed on Nomu, signed an agreement with Awj Real Estate Development and Investment on 14 October. First Avenue sells its entire 38.6% of La Perle Real Estate Fund. In return it receives Awj's 48.9% of Al Shati Real Estate Fund, valued at SAR 124.62M, plus SAR 6.35M in cash. The stated transaction value is SAR 130.96M.

The effect is consolidation. First Avenue's Al Shati holding rises from 32.7% to about 81.6%. The filing describes Al Shati as holding around SAR 255.1M in assets, including roughly SAR 45M in cash and a 15,600 sq m plot in Jeddah's Al Shati district, with no outstanding financing. First Avenue expects a profit of SAR 3.56M, and the final figure depends on completing the unit transfer. The agreement is signed but not yet completed.

## MSGA and Sakan

MSGA Investment, also on Nomu, signed a SAR 13.47M contract with the Developmental Housing Foundation, known as Sakan, on 14 October. The units are 25% of the residential units in the MSGA 30 project in Riyadh's Al-Safa district. The price excludes real estate transaction tax and brokerage fees, and ownership transfers within 60 days. MSGA expects a positive effect on its results from Q4 2026.

## SRC's second RMBS

The Saudi Real Estate Refinance Company, a PIF company, launched its second residential mortgage-backed securities issuance, reported on 13 October. It follows the first issuance in August 2025. SRC describes this one as the first domestic RMBS to carry published credit ratings from Moody's Ratings and Fitch Ratings. The size was not stated in the announcement, so I won't guess one.

## What I'd watch next

Whether First Avenue confirms completion of the Al Shati transfer, and whether SRC publishes the size and pricing of the new issue.

## Sources

- https://www.argaam.com/en/article/articledetail/id/1944305
- https://www.argaam.com/en/article/articledetail/id/1943863
- https://tradearabia.com/News/487952/Saudi-PIF-unit-launches-second-residential-mortgage-backed-securities-issuance

Canonical: https://heyaliasif.com/deals/2026-10-15-first-avenue-msga-src-rmbs