Pag-IBIG to invest P10B in Megawide’s 4PH project

The Home Development Mutual Fund (Pag-IBIG) is investing around P10 billion in a Megawide Construction Corp. unit that will build low-cost housing for the government’s Pambansang Pabahay Para sa Pilipino (4PH) program.

In a statement on Wednesday, Megawide said it signed an Investment and Partnership Agreement with Pag-IBIG.

Under the deal, Pag-IBIG will subscribe to perpetual preferred shares to be issued by Megawide Dreamrise Residences Inc., a 100% subsidiary of Megawide, for P10 billion, payable in three tranches.

The funds will be used by the company to deliver at least 7,000 affordable housing units under the 4PH program over the next two to three years.

“The partnership with Pag-IBIG is strategic in addressing the imbalance between demand and supply in the housing sector," said Megawide chairman and CEO Edgar Saavedra.

"We believe we are uniquely positioned and technically capable to deliver high-quality and cost-efficient housing that meets the requirements of the 4PH program, with speed and consistency,” he added.

Pag-IBIG Fund CEO Marilene Acosta said its partnership with Megawide allows Pag-IBIG 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," she said.

"Ultimately, this is about providing meaningful benefits to our members while actively contributing to nation-building. We are happy to support a company that shares our commitment to building a better future for every Filipino,” Acosta added.—MCG, GMA Integrated News