Businessman Andrew Tan’s holding firm Alliance Global Group Inc. on Tuesday bared spending P70 billion as capital expenditures this year, a big chunk of which is set aside for its property development arm and its liquor business.
Caroline L. Kabigting, who leads the company’s investor relations, said some P55 billion will fund various endeavors but around P7 billion is earmarked for Emperador Inc. and P2 billion for Golden Arches Development Corp. which operates the McDonalds franchise in the country.
This year’s capex is 22 percent higher than last year’s P57 billion expense activities.
“We have outlined our growth strategies for enterprise businesses, because we believe in the prospects of our group’s execution capabilities. We are doing all this as we continue to strengthen our position as a truly premium lifestyle conglomerate,” Kabigting said.
According to her, Megaworld will launch three new township projects woth P60 billion in Luzon and Mindanao this year. The entreprise already owns 30 townships extending over 5,170 hectares in various sites across the country.
This should help generate projected reservation sales of P130 billion this year, Kabigting said.
Megaworld also looks to boost its gross leasable office area by 207,000 square meters and its shopping mall by another 160,000 square meters. It likewise targets to add 3,160 hotel rooms over the next five years.
The company’s Emperador brandy is seen to contribute at least half of the aggregate sales by 2025 from only 35 percent at present. To achieve this, Emperador plans doubling its single malt sales which have been growing in double digits since 2020.
The Travelers International Hotel Group Inc. operating its resort and gambling enterprise posted a turnaround performance last year. To sustain this, Megaworld is rebuilding the share of its premium gaming revenues to 50 percent from 40 percent at present, Kabigting said.
As for Golden Arches operating the McDonald’s franchise, the enterprise plans opening 50 more stores throughout the country with a capex budget of P4 billion.
As Tan owns 49 percent of the business, he gets to fund half the budget.
