Alliance Global eyes rental revenue of P4 billion in 2011

MANILA, Philippines - Alliance Global Group Inc. (AGI), the listed flagship firm of tycoon Andrew Tan, is eyeing rental revenues of P4 billion in 2011, up 33 percent from the projected P3 billion this year.

AGI president Kingson U. Sian said the group’s rental revenues are forecast to grow further to P5 billion by 2012 with the completion of new office and commercial projects.

By yearend,  the company will have a total rentable space of 452,765 square meters, the bulk of which or 383,765 sqm are office properties and 69,000 sqm in retail space.

AGI expects its net income to grow by at least 38 percent in 2010 and 2011 on the steady growth of its real estate, gaming, fastfood and hard liquor businesses.

In particular, net earnings are seen to hit P6.62 billion this year from P4.8 billion. The group’s cash position is also projected to grow to least P60 billion by 2011.

Tan’s real estate asstes — Megaworld, Empire East and Suntrust brands, booked P33 billion in sales in the first eight months of the year.

Megaworld currently has six township developments under way in the most strategic locations in Metro Manila, in addition to several luxury residential condominium projects in the heart of the Makati central business district.

Megaworld expects its reservation sales to reach an all-time high of P24 billion this year on brisk take-up of its projects, particularly Newport City in Pasay.

For launch in the second half this year are  Palm Bay in Manila, Maple Park Villas at McKinley Hill in Fort Bonifacio, Two Central West Tower in the Makati CBD and 81 Newport Boulevard at Newport City in Pasay City.

Palm Bay is a P5-billion mixed-use condominium project that will rise within Cultural Center of the Philippines complex adjacent to the Coconut Palace. The project, in partnership with the Government Service Insurance System, will feature three high-rise residential towers, offering a total of 900 units or 300 units each.

McKinley Hill Maple Park Villas will involve the development of three Mediterranean-inspired medium-rise clusters with a total of 269 condominium units.

On the other hand, the 50-storey Two Central West Tower, located along Valero Street in Salcedo Village, will make available 672 units and a twin-level retail arcade.

81 Newport Boulevard will have six 10-story residential clusters, offering 850 units.

Meanwhile, AGI’s quick-service restaurant unit Golden Arches Development Corp. expects to end the year with a total of 310 outlets and is looking to build 25 or more stores in 2011.