Pag-IBIG Fund has entered right into a partnership with Megawide Construction Corp. to speed up the delivery of seven,143 housing units in medium-rise residential developments under the federal government’s Expanded Pambansang Pabahay para sa Pilipino Program, or Expanded 4PH. Pag-IBIG Fund said the homes are expected to be priced below typical market prices for comparable units, bringing them inside the socialized housing range, with amenities more commonly present in higher-priced developments, and be available inside two to a few years.
The partnership will cover two initial sites in Dasmariñas, Cavite, consisting of 4,185 housing units within the Dasmariñas-Salitrán site and a pair of,958 housing units within the Dasmariñas-Paliparan site, supporting the national government’s push to scale socialized housing through greater private sector participation and faster project delivery.
Department of Human Settlements and Urban Development Secretary Jose Ramon P. Aliling, chair of the Pag-IBIG Fund Board of Trustees, said the partnership is designed to expand the provision of socialized homes while enabling faster construction and more accessible pricing for Filipino families.
“This approach supports the directive of President Ferdinand R. Marcos Jr. to widen access to practical homeownership options for Filipino families by enabling the private sector to construct faster and at scale under the Expanded 4PH,” Mr. Aliling said. “By strengthening partnerships that increase housing supply, we help create more opportunities for Filipino employees and their families to maneuver closer to homeownership. We hope this can further stimulate private sector participation in constructing inexpensive homes.”
Megawide is a number one Philippine engineering and construction company and a powerful government partner in public-private partnerships, with extensive experience and track record in delivering large-scale projects.
Under the partnership, Pag-IBIG Fund will invest as much as P10 billion through a subscription to preferred shares within the project company, to be funded in three tranches: P5 billion for the primary tranche, and P2.5 billion each for the second and third tranches. The popular shares carry 9% annual money dividends, payable annually, with a step-up to 18% if the shares usually are not redeemed.
Pag-IBIG Fund Chief Executive Officer Marilene C. Acosta said the investment advances Pag-IBIG Fund’s twin mandate to expand homeownership opportunities for Filipino employees and to prudently manage members’ savings so these proceed to earn and grow.
“Every peso our members save with Pag-IBIG Fund represents their hard-earned money and their hope for a greater future,” Ms. Acosta said. “By supporting the event of 1000’s of housing units while securing investment returns, we strengthen Pag-IBIG Fund’s capability to serve more members, grow their savings and promote homeownership.”
Acosta added that the partnership model goals to show how structured and secured investments can encourage broader private sector engagement in housing, helping speed up project rollouts and expand the inventory of inexpensive, ready-for-occupancy homes.
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