Alliance Global sets P410-B 5-year capex.
Alliance Global sets P410-B 5-year capex !-- -- Iris Gonzales (The Philippine Star) - July 2, 2019 - 12:00am MANILA, Philippines Alliance Global Group Inc. (AGI), the listed conglomerate of tycoon Andrew Tan, is pouring in P410 billion in the next five years to fund its capital expenditures.
AGI chief executive officer Kevin Tan said the five-year budget is higher than the P377 billion allocated from 2015 to 2019 and supports the company's aggressive growth plans. "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," Tan said. Of the P410 billion, property giant Megaworld will get the biggest allocation or around 73 percent of the capex.
Megaworld Corp., AGI's property arm, will use the capex to fund its pipeline of urban townships.
A portion of the budget will also be allocated for the company's landbanking strategy in order to add to its current 4,700 hectares of developable land. Travellers International Hotel Group, owner and operator of Resorts World Manila (RWM), meanwhile, will account for another 15 percent of the group's five-year capex.
This would fund largely the development of its next integrated resort, Westside City Resorts World, which will rise on a 30.5-hectare property within the PAGCOR Entertainment City complex in Paraaaque. Golden Arches Development Corp.
(GADC) will get five percent of the group's capex. GADC holds the exclusive franchise to operate quick service restaurants (QSR) in the Philippines under the McDonald's brand.
The capex would fund GADC's store expansion program which will see the addition of 50 to 60 McDonald's stores a year. This would add to the company's existing network of 633 stores.
Emperador Inc., the world's largest brandy company and owner of the fifth largest Scotch whisky manufacturer in the world, meanwhile, will get four percent of the capex.
The money will be used to support its global distribution system particularly for its premier whisky products under Whyte and Mackay and Spanish brandy products under Bodegas Fundador. Moving forward, Emperador plans to expand its product mix in the domestic market with the recent introduction of The Bar Premium Gin.