Pag-IBIG Fund, Megawide partnership to build over 7,000 socialized homes

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 Fund 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 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, 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 supply 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 build 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 workers and their families to move closer to homeownership. We hope this will further stimulate private sector participation in building affordable homes.”

Megawide is a leading Philippine engineering and construction company and a strong 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 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 9% annual cash dividends, payable annually, with a step-up to 18% if the shares 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 workers and to prudently manage members’ savings so these continue to earn and grow.

“Every peso our members save with Pag-IBIG Fund represents their hard-earned money and their hope for a better future,” Ms. Acosta said. “By supporting the development of thousands of housing units while securing investment returns, we strengthen Pag-IBIG Fund’s capacity to serve more members, grow their savings and promote homeownership.”

Ms. Acosta added that the partnership model aims to demonstrate how structured and secured investments can encourage broader private sector engagement in housing, helping accelerate project rollouts and expand the inventory of affordable, ready-for-occupancy homes.

Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by publishing their stories on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

Join us on Viber at https://bit.ly/3hv6bLA to get more updates and subscribe to BusinessWorld’s titles and get exclusive content through www.bworld-x.com.