Pag-IBIG, Megawide partner for 7,143 housing units

MANILA, Philippines — Pag-IBIG Fund has entered into a partnership with Megawide Construction Corp. to accelerate the delivery of 7,143 housing units in medium-rise residential developments under the government’s Expanded Pambansang Pabahay para sa Pilipino Program, or Expanded 4PH.

Pag-IBIG said the homes are expected to be priced below typical market prices for comparable units, bringing them within the socialized housing range, with amenities more commonly found in higher-priced developments and will be available within two to three years.

The partnership will cover two initial sites in Dasmariñas, Cavite consisting of 4,185 housing units in the Dasmariñas-Salitrán site and 2,958 housing units in the Dasmariñas-Paliparan site.

Department of Human Settlements and Urban Development Secretary Jose Ramon Aliling said the partnership is designed to expand the supply of socialized homes while enabling faster construction and more accessible pricing for Filipino families.

Megawide is a leading Philippine engineering and construction company and a strong government partner in public-private partnerships.

Under the partnership, Pag-IBIG Fund will invest up to P10 billion through a subscription to preferred shares in the project company, to be funded in three tranches: P5 billion for the first tranche and P2.5 billion each for the second and third tranches. The preferred shares carry nine percent annual cash dividends, payable annually, with a step-up to 18 percent if the shares are not redeemed.

Pag-IBIG chief executive officer Marilene Acosta said the investment advances Pag-IBIG’s twin mandate to expand homeownership opportunities for Filipino workers and to prudently manage members’ savings so these continue to earn and grow.