AGI sets P240-B capex for next 3 years
Tycoon Andrew Tan-led conglomerate Alliance Global Group Inc. (AGI) has set aside P240 billion for capital outlays for the next three years, seeking to “future-proof” the business empire and fund organic growth.
AGI’s capital spending budget for 2018 to 2020 is meant to launch more development projects around the country, further increase leasing capacities of its office buildings and lifestyle malls, expand land banking as well as hotel and integrated resorts operations, and to increase the number of McDonalds fast-food stores nationwide. These are in addition to funding maintenance capital expenditure.
“We are mindful of the current domestic and global economic developments, but we remain cognizant of the vast opportunities in the market; hence, our continued aggressive capital spending,” AGI chief executive officer Kevin Tan said in a statement yesterday.
During AGI’s stockholders meeting yesterday, Tan said the P240-billion capital spending would be funded mostly by internally generated cash and some borrowings.
AGI’s capital spending plan for the three-year period is more aggressive than the kind of spending it had done in the last 10 years. AGI had shelled out some P470 billion for capital outlays in the last 10 years.
In the next three years, flagship property firm Megaworld Corp. is expected to get the budget, amounting to P60 billion yearly.
The budget includes $200 million (P10.6 billion) for integrated gaming resort developer Travellers International Hotel Group to start the development of Westside City Resorts World, which is expected to have a soft opening by 2021.
Through new business unit Infracorp, the group is building a 1.88-kilometer monorail that will connect Fort Bonifacio to Guadalupe, Makati.
In the last 10 years, Megaworld launched about P200 billion worth of residential projects, and added 800,000 square meters in gross leasable area for its office and lifestyle malls businesses.—DORIS DUMLAO-ABADILLA
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