Alliance Global sets P75-billion capex for 2024

Billionaire Andrew Tan’s listed holding company Alliance Global Group Inc. (AGI) has earmarked P75 billion for its spending program this year, which will mostly finance its real estate business through Megaworld Corp.

The latest capital expenditure (capex) program is the company's highest in eight years since the P77-billion program in 2016, and reflects a 19% growth from the actual spend of P63 billion in the previous year.

Bulk of the capex will be allotted to Megaworld with P55 billion, as the firm is set to expand its real estate portfolio to 35 townships in 2024. It has set a P350-billion five-year township expansion initiative, and currently has 31 master planned integrated urban townships.

Part of the capex will be for residential and hotel projects that will be located in Iloilo and Boracay, and new lifestyle malls in Boracay, Cavite, and Pampanga. It is also set to construct office buildings in Iloilo, Bacolod, and Pampanga.

The capex also includes P10 billion for Travellers International Hotel Group Inc., which is refurbishing the Newport Mansion that will house all-suite rooms, garden villas, and bay suites. It will also develop the Westside City that houses the Grand Opera House, theaters, and cinemas.

Emperador Inc. is also set to spend P6.5 billion this year, bulk of which will go into whisky business as the expansion of its Dalmore distillery is set to be completed in the second half.

The balance will be spent on the expansions of McDonald’s store network to bring its total stores to 800 this year, under the Golden Arches Development Corp. (GADC).

“AGI remains steadfast and dedicated to driving growth across all its business segments, mindful of its goal to elevate global consumer preferences through aspirational product offerings,” AGI president and chief executive officer Kevin Tan said in an emailed statement.

The holding firm reported a 20% growth in 2023 to hit a record net income of P30.3 billion, while its attributable net profit climbed 21% to P19.6 billion as consolidated revenues rose 15% to P211.2 billion. — BM, GMA Integrated News