Business

Andrew Tan’s AGI sets P410B capex in next 5 years

Alliance Global Group, Inc. (AGI) is ratcheting up expansion with around P410 billion earmarked in the next five years to support the growth of its real estate, liquor, gaming and fastfood businesses.

Alliance Global Group, Inc. (AGI) is ratcheting up expansion with around P410 billion earmarked in the next five years to support the growth of its real estate, liquor, gaming and fastfood businesses.

The programmed budget is higher than the P377 billion set aside for 2015 to 2019 inclusive of the P85 billion allocation for this year.

“Our five-year capital spending program signals our ongoing thrust to pursue an aggressive but organic growth strategy for our various businesses. It is our intention to continue to reinvest in these businesses to sustain our growth pace,” said Kevin L. Tan, CEO of AGI.

Alliance Global Group posts solid earnings growth

Tan said 73% of the group’s capex will go to property arm Megaworld Corp., which continues to launch new residential and office buildings, lifestyle malls and hotels across the country as well as for land acquisitions.

Subsidiary Travellers International Hotel Group, Inc., owner and operator of Resorts World Manila (RWM), will receive 15% of the P410 billion five-year capex. The amount will be used largely to fund its second integrated resort within the Pagcor Entertainment City in Paranaque.

About 5% will be channeled to Golden Arches Development Corp., the Philippine franchise holder of global fastfood giant McDonald’s. GADC continues to expand its store network with plans to build 50 to 60 McDonald’s outlets a year to add to its current 633 branches. Plans also include the construction of more NXTGEN stores.

Hard liquor unit Emperador Inc. will get 4% of the group budget to be used to launch new products.

The remaining 3% will be allocated for Infracorp Development Inc. largely to fund the 2-kilometer Fort Bonifacio-Makati Skytrain monorail project, and the rehabilitation of the Ninoy Aquino International Airport. Both projects are awaiting NEDA approval.

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