Saudi Arabia’s Red Sea Housing Services (RSHS) has completed the acquisition of Malaysian modular building manufacturer AM Modular, according to a company statement.

The $7m acquisition saw the Saudi firm pay a down payment of SR11.2m ($3m) to be made this year. The remaining SR15m ($4m) will be made over the next three-year period for a total of 90 per cent of AM Modular’s shares, said the statement.

The statement also confirmed the deal will be financed through existing facilities and internal cash flow. The acquisition will be made by the company’s subsidiary based in Dubai.

In 2015, RSHS signed an agreement with a Brazilian company that specialises in developing low-cost housing in an effort to meet demand for new homes, due to population growth in Saudi Arabia.

Brazilian firm Direcional Engenharia will work with RSHS to help the Housing Ministry hit its target of building 500,000 affordable homes by 2020.