MANILA, Philippines -- The Government Service Insurance System (GSIS) has entered into a joint venture with property developer Megaworld for the construction of a P3.5-billion, mixed-use condominium project within the Cultural Center of the Philippines Complex.

Under the joint venture agreement, GSIS will contribute its 7,741-square-meter lot within the CCP complex in Pasay City and adjacent to the Coconut Palace to add to the entire 60,000 square-meter lot needed to house three condominium buildings and other facilities.

On the other hand, Megaworld will shoulder the cost of constructing the condominiums. Each of the three buildings is estimated to have 300 units, and each unit shall measure 43 square meters.

GSIS will get 18 percent of the revenues to be generated from the project, according to GSIS President and General Manager Winston Garcia.

He said the project would be completed by 2014.

?It is a very exciting project for us. This is the kind of residential condo project that the reclamation area needs,? Garcia said in a statement.

He said the joint venture with Megaworld, a publicly listed company led by Andrew Tan, is consistent with the asset program, under which real properties would be developed via forging partnerships with developers.

Other residential condominium projects of Megaworld include the Once Central, Greenbelt Madissons, One Lafayette Square, Paseo Parkview Tower, Forbeswood Heights, Woodridge Residences, Mckinley Hill, and the Garden Villas.

The company is also into township developments, which include the Eastwood City in Libis, Quezon City; Mckinley Hill in Fort Bonifacio, Taguig, City Place in Manila; New Port City in Pasay; Forbes Town Center in Taguig; and the Manhattan Garden City in Araneta Center, Quezon City.

GSIS' joint venture with Megaworld is the second of the same type of partnership it forged with a private sector. The first one was with SM Development Corp. and signed in 2008. It involved the construction of a condotel.

Garcia, which will end his term on June 30, said engaging in joint venture agreements with the private sector has been a prudent way to maximize the earning capacity of the assets of GSIS.

Last week, GSIS reported an 18-percent jump in its assets in 2009 from a year ago, or from P484 billion to P572 billion.

Garcia said the increase in GSIS assets was partly attributed to stricter measures in collecting premiums from its members.

He also reported last week that GSIS generated P18.5 billion in net income in the first four months of the year, 10-percent higher year-on-year.

Garcia said the increase in net income was partly driven by earnings from its equities investments.