GSIS, PNB allot P1.2 billion for affordable housing

MANILA, Philippines — State-run pension fund Government Service Insurance System has teamed up with Lucio Tan-led Philippine National Bank to earmark P1.2 billion to construct affordable houses and address the backlog in the country.

In a statement, GSIS said it inked an agreement with PNB that would grant real estate developer P.A. Alvarez Properties and Development Corp. a P1.2-billion note facility.

The pension fund for government workers and retirees will allocate P900 million under the agreement, while PNB will share P300 million.

GSIS president and general manager Wick Veloso said the latest move of the fund manager is still part of efforts to address the national housing shortage, which is roughly at 6.5 million units.

Prior to his appointment at the pension fund, Veloso served as president and CEO of PNB from 2018 to 2022.

The combined funds will support P.A. Properties in land banking, acquisition, development and expansion plans aimed at increasing affordable housing availability.

This would also allow the developer to construct 20 housing communities.

PNB president Florido Casuela explained that the venture is the listed bank’s move to also bolster its housing project investments.

According to P.A. Properties chairman Romarico Alvarez, the partnership would significantly boost its goal of providing sustainable and affordable housing to more Filipinos.

For the past three decades, the real estate developer has built over 20,000 housing units in strategic locations across the country.