Megawide clinches P10-B Pag-Ibig investment for housing program
Megawide Construction Corp. has received a P10-billion investment from state-run Home Development Mutual Fund, or Pag-Ibig, meant to accelerate the government’s affordable housing project.
The company on Wednesday disclosed that it had signed an investment and partnership deal with Pag-Ibig Fund to ramp up the rollout of the Pambansang Pabahay Para sa Pilipino (4PH) program.
The infusion of the fresh funding would be realized through the government agency’s participation as an investor in the 4PH initiative. This will be done via its subscription to perpetual preferred shares issued by Megawide Dreamrise Residences Inc.
The investment would come in three tranches.
This will be earmarked for the launch of at least 7,000 housing units over the next two to three years, Megawide said.
This team-up comes after Megawide showed interest in participating in the current administration’s expanded housing program, with a target to build 100,000 units.
“The partnership with Pag-Ibig is strategic in the sense that it addresses the imbalance between demand and supply in the housing sector,” Megawide chair and CEO Edgar Saavedra said.
“We believe that we are uniquely positioned and technically proficient to deliver high-quality and cost-efficient housing products that meet the requirements of the 4PH program, with speed and consistency,” Saavedra said.
Pag-Ibig Fund CEO Marilene Acosta, meanwhile, said that their deal with Megawide enables the agency “to deliver affordable homes faster and make them more accessible to our members.”
“At the same time, it helps us prudently grow and protect our members’ savings through a board-approved investment that further strengthens our already secure and profitable portfolio,” Acosta said.
Aside from Megawide’s alliance with Pag-Ibig Fund, the firm was also a partner of the government in establishing 10,000 public school classrooms under the Public-School Infrastructure Project Phases 1 and 2.
