Affordable Housing Startup Lhoopa Signs P1.1 Billion Loan Deal with ADB
Tech-driven housing startup Lhoopa has signed a loan agreement worth $20 million (about P1.1 billion) with the Asian Development Bank that will support the company’s efforts to address the housing shortage in the Philippines.
In a news release, the ADB said the fresh funds will support Lhoopa’s capacity to acquire, renovate, construct, and sell properties sold at an average price of P850,000 (around $15,000). These houses are offered to average-income earners in the country, such as such as drivers, security guards, factory workers, teachers, and office administrative workers.
The ADB added that at least 25 percent of the homes sold will be certified by Excellence in Design for Greater Efficiencies, an internationally recognized green building standard system.
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The Asian Development Bank (ADB) and Lhoopa, Inc. have signed a loan agreement of up to $20 million to help deliver affordable housing for average-income earners in the Philippines, improving their quality of life and reducing the country’s housing shortage.
“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,” said ADB Director General for Private Sector Operations Suzanne Gaboury. “The project not only provides livable spaces for these communities, but also enhances their climate resilience.
“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,” Gaboury added. “This innovative facility is well suited for small-scale companies that are experiencing rapid growth.”
Founded in 2018, Lhoopa uses a proprietary digital platform to identify areas with potential demand across the country. It then invests in property and taps its network of over 100 small-scale contractors—construction, sales, and customer management professionals—to build affordable homes, which it then sells to deserving clients. The system helps improve the quality of life for its clients and reduces the country’s housing shortage.
Founders Caillot and Sabrina Tan were included in the 2024 edition of Esquire Philippines’ Startup Trailblazers List.
According to the ADB, the Philippine government estimates that the housing shortage will reach 6.5 million by 2030. Around 90 percent of the houses needed are valued at below P1.2 million, but local property developers tend to focus on mid- to high-end condominiums and townships for wealthier urban dwellers.
With ADB’s support, Lhoopa is one step closer to delivering up to 4,000 houses annually 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,” said Lhoopa Founder Marc-Olivier Caillot. “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 also works closely with the state-owned Home Development Mutual Fund (PAG-IBIG), which was established to provide a national savings program and affordable housing financing. Lhoopa was the first nontraditional developer to be accredited by Pag-IBIG in 2020, and became one of the its top 20 developers in 2022.
The ADB is a regional development bank dedicated to eradicating poverty in Asia Pacific through inclusive economic and environmentally sustainable growth, and regional integration. It invests in infrastructure, health care services, financial and public administration systems through loans and grants.
