Alliance Global plans P240-billion spending over 3 years

MANILA, Philippines — Alliance Global Group Inc. (AGI), the listed conglomerate of Andrew Tan,  plans to spend P240 billion over the next three years to support its growth.

AGI chief executive officer Kevin Tan said the company is prepared to spend the hefty amount from now up to 2020 to maximize opportunities in the market.

“We are mindful of the current domestic and global economic developments, but we remain cognizant of the vast opportunities in the market; hence, our continued aggressive capital spending,” Tan said during the company’s annual stockholders’ meeting yesterday.  

He said bulk of the planned capital expenditures would  be funded internally, leaving only a small portion that will need bank financing. 

With the amount, AGI is expected to launch more development projects around the country to increase its leasing capacities for its office buildings and lifestyle malls, expand land banking as well as hotel and integrated resorts operations, and to increase the number of McDonalds stores nationwide.

The company plans to expand the McDonalds network to 1,000 stores in the next few years from around 560 at the end of last year.

During the last 10 years, the conglomerate has allocated around P470 billion in capex, of which about 80 percent was spent over the last five years for expansion.

Megaworld Corp. launched around P200 billion worth of residential projects, and added 800,000 square meters in gross leasable area for its office and lifestyle malls businesses.

Travellers International Hotel Group Inc., the operator of Resorts World Manila, completed RWM’s Phase 2 expansion, and launched the Marriott Hotel West Wing and the Marriott Grand Ballroom.

It also pursued Phase 3 of its expansion program, which will add new international hotel brands Hilton, Sheraton and Okura, as well as the Grand Wing casino.

The company plans to have 12,000 rooms over the medium-term.

This is in support of the government’s thrust to reach its 10 million tourist arrivals target by 2020.

AGI’s spirits subsidiary Emperador Inc., on the other hand, acquired Scotland-based Whyte and Mackay (2014), Bodegas Fundador of Spain (2016) as well as the Pedro Domecq brands of Mexico (2017).   

Golden Arches Development Corp., for its part, opened over 200 McDonalds stores throughout the country during the last five years.

Newly-formed infrastructure subsidiary, Infracorp Development Inc. is set to undertake rail infrastructure projects that are aimed at helping the government provide world-class public transport system to promote efficient movement of the riding public across Metro Manila.   

Megaworld plans to grow its office and mall gross leasable area to two million square meters as it targets to bring its rental income to P20 billion by 2020.

As for Emperador, it intends to further expand its portfolio of domestic and international liquor brands through more product introductions, like Shackleton, Terry White, Fundador Double Light, and The Dalmore 50 for the international market, as well as Hotshots, Emperador Red and its gin product The Bar, for the domestic market.