Megawide Construction Corp. has signed a P10-billion investment and partnership agreement with the Home Development Mutual Fund, or the Pag-IBIG Fund, to accelerate the rollout of the government’s expanded Pambansang Pabahay Para sa Pilipino (4PH) program.
The partnership aims to address the supply gap in the housing sector and support the flagship housing initiative of the administration of President Ferdinand Marcos Jr.
Under the agreement, Pag-IBIG will participate as an investor in the 4PH projects of Megawide through the subscription of P10 billion worth of perpetual preferred shares.
These shares will be issued by the wholly owned unit of the company, Megawide Dreamrise Residences Inc.
The investment will be released in three tranches and is expected to fund the delivery of at least 7,000 housing units at affordable packages over the next two to three years.
Megawide chairman and chief executive Edgar Saavedra said the partnership is strategic because it addresses the imbalance between demand and supply in the housing sector.
He noted that the company is uniquely positioned and technically proficient to deliver high-quality and cost-efficient housing products with speed and consistency.
The company plans to launch 100,000 units as part of its long-term roadmap. The first 50,000 units have already been identified for the pipeline over the next 5 years, including 5 projects located in Cavite.
Pag-IBIG Fund chief executive Marilene Acosta said the partnership allows the fund to deliver affordable homes faster and make them more accessible to members.
She said the board-approved investment helps the fund prudently grow and protect member savings while contributing to nation-building.
As the largest home financing institution in the country, Pag-IBIG began offering a subsidized 3 percent annual interest rate on eligible socialized housing loans in July.
The rate is applicable for the first five years of the loan term and can be extended for another five years for qualified borrowers. The program covers both horizontal and vertical housing projects nationwide.
