Alliance Global allots P70 billion for 2023 capex

MANILA, Philippines — Alliance Global Group Inc. (AGI) of tycoon Andrew Tan is allocating P70 billion for its capital expenditures this year, 23 percent higher than the year ago to sustain the strong growth momentum of its domestic and international operations.

AGI chief executive officer Kevin Tan said during the company’s annual stockholders meeting that of the P70 billion, property arm Megaworld would spend P55 billion for its expansion plans across its office, mall and hotel business segments.

Megaworld targets P73 billion worth of projects ready for turnover in the coming months. It also plans to launch 20 new development projects this year valued at P60 billion.

Emperador Inc. will invest P7 billion for the upgrade of its machinery and facilities here and abroad, of which P6 billion will be spent to expand operations of its distilleries in Scotland. The balance of P1 billion will be utilized to improve the company’s brandy production facilities in the Philippines, Spain and Mexico.

Travellers International Hotel Group Inc., the leisure and hospitality business, meanwhile, is pouring in P4 billion to expand the Newport World Resorts complex.

Golden Arches Development Corp. (GADC), meanwhile, will utilize its P4-billion capex to open 50 McDonald’s stores this year following its successful launch of 45 new stores in 2022.

GADC holds the exclusive franchise to operate restaurants in the Philippines under the McDonald’s brand.

“AGI has been focused on delivering products and services that create a bespoke and premium lifestyle for our discerning customers. A firm believer of the country’s attractive long-term growth prospects, the group is betting on the continued improvement in consumer spending,” Tan said.

Last year, AGI recorded a 20 percent year-on-year increase in consolidated revenues to P183.6 billion. Its net income stood at P16.1 billion, reflecting a growth of seven percent year-on-year based on core earnings in 2021.

Tan said AGI is positioning itself as a major tourism player. As such, It is developing new tourism estates to add to its premium townships. These include Twin Lakes in Tagaytay (Cavite) and Boracay Newcoast, in Boracay (Aklan).

AGI is also behind the 300-hectare The Hamptons Caliraya, a lakeside township in Laguna.

“Moving forward, AGI will continue to pursue expansion projects that will help put it at a vantage position to elevate the tastes and preferences of the Filipino consumer and customers worldwide with its aspirational product offerings, further reinforcing its position as the country’s truly premium lifestyle conglomerate,” Tan said.