Metro Manila, Philippines – The lead housing agency has entered into an investment partnership with P.A. Alvarez Properties and Development Corporation (PAAPDC) to accelerate the construction of more than 7,300 affordable homes across 10 housing developments in Batangas, Laguna and Pampanga.
The developments will consist of 80 percent socialized and 20 percent economic housing units, expanding the supply of quality, affordable homes in key growth areas across south and central Luzon under the Expanded Pambansang Pabahay para sa Pilipino Program.
Housing Secretary Jose Ramon Aliling, who also chairs the Pag-IBIG Fund board of trustees, said the partnership reflects the administration’s continuing efforts to accelerate housing delivery through stronger collaboration with the private sector.
“As we continue to heed the directives of President Ferdinand R. Marcos Jr., we are strengthening our partnerships with the private sector to accelerate the delivery of affordable homes for Filipino families. Through this partnership, we are bringing together government financing and private-sector capability to increase housing supply, help more Filipino workers achieve the dream of homeownership, create jobs, support industries and drive inclusive economic growth,” Aliling said in a statement.
To finance the construction of the housing developments, Pag-IBIG said it will subscribe to ₱2.9 billion in preferred shares to be issued by PAAPDC payable in tranches. The investment will earn a fixed annual return of 9 percent over the next three years.
The investment underwent Pag-IBIG Fund’s comprehensive evaluation process, which included an assessment of the proposed developments, their locations and market demand, PAAPDC’s financial and operational capacity, and the safeguards incorporated into the transaction to ensure the continued protection of member savings.
Pag-IBIG Fund CEO Marilene Acosta said the partnership reflects the government’s commitment to help more workers achieve home ownership while prudently investing member savings to generate secure and sustainable returns.
“This partnership demonstrates how Pag-IBIG Fund fulfills its dual mandate of helping more Filipino workers achieve the dream of homeownership while prudently investing and growing our members’ savings. By supporting the construction of more than 7,300 affordable homes through a prudent investment that provides stable returns, we protect our members’ hard-earned savings, sustain competitive dividends and strengthen our capacity to finance even more homes for Filipino workers,” Acosta said.
According to the statement, Pag-IBIG Fund is assessing additional investment partnerships with qualified housing developers as part of its continuing efforts to accelerate the construction of socialized and affordable homes while generating secure and sustainable returns for member savings.
In the first half, the agency released ₱69.19 billion in housing loans to 43,051 workers to acquire their own homes. Socialized housing financing more than doubled during the period, with 6,601 minimum-wage and low-income members securing homes under the Expanded 4PH Program.
