THE Asian Development Bank (ADB) and real estate investment firm Lhoopa, Inc. have signed an agreement of up to $20 million to finance housing in the Philippines, a portion of which will meet green-building standards.
In a statement on Monday, ADB Director General for Private Sector Operations Suzanne Gaboury said this would represent the bank’s first foray into private-sector housing in the Philippines.
The $20-million loan will help Lhoopa acquire, renovate, construct, and sell property estimated to cost an average of $15,000 (P850,000).
“This is ADB’s first private-sector housing project in the Philippines, and Lhoopa is a fitting partner as it caters to people who are often unable to adapt to the impacts of climate change. The project not only provides livable spaces for these communities, but also enhances their climate resilience,” Ms. Gaboury said in a statement.
At least 25% of the houses sold will hold an EDGE (Excellence in Design for Greater Efficiencies) certification, a green building standard developed by the International Finance Corp.
“This will also be ADB’s first infrastructure project to use a revolving credit facility, allowing Lhoopa to repay the loan and withdraw it again as needed, without having to reapply for financing. This innovative facility is well suited for small-scale companies that are experiencing rapid growth,” Ms. Gaboury added.
Lhoopa seeks to build up to 4,000 houses yearly by 2025 and 8,000 by 2028.
“With the ADB facility, we will be able to provide thousands more of affordable homes to Filipino families,” Lhoopa Founder Marc-Olivier Caillot said. “Having such an esteemed institution by our side puts us on a global stage and will allow us to apply our technological solutions on a larger scale, thereby impacting more lives in the process.”
Lhoopa uses a proprietary digital platform that helps identify areas with potential demand. The platform also hopes to engage over 100 local small-scale contractors for renovation and construction and around 4,000 real estate agents to find potential buyers. — Beatriz Marie D. Cruz
