AGI boosts capex to P60B as economy further reopens

Alliance Global Group Inc. (AGI) hiked its capital expenditure (capex) this year by 33 percent to P60 billion, the bulk of which will go to its real estate business, as it seeks to maximize opportunities brought about by easing mobility restrictions.

Kevin L. Tan, AGI chief operating officer, said during their stockholders’ meeting on Thursday that funding would be “largely” internally sourced. He said the company was seeing better operating cash flows, allowing it to finance expansion plans “this year and beyond.”

He said P50 billion of the budget was for the development and investment activities of subsidiary Megaworld Corp.

The real estate arm is set to launch four townships, for a total of 500 hectares, in Metro Manila, Calabarzon and Mindanao this year. It also plans to sell 14 new projects amounting to P30 billion.

Resorts World Manila developer Travellers International Hotel Group Inc. has a share of P4 billion for expansion of leisure and entertainment business as more customers return to premises.

Travellers noted that the Newport City complex has resumed meetings, incentives, conferences and exhibition activities while its hotels, including Marriott Manila, have seen the number of guests increase.

AGI’s liquor business, Emperador, was given P3 billion to further establish its overseas presence. Tan said this segment has been growing robustly since the pandemic.

Golden Arches Development Corp., which holds the exclusive franchise to the McDonald’s brand, earmarked a P3-billion capex as it plans to open 45 new stores this year.

AGI is also seeking to return to its prepandemic performance this year. In the first quarter, AGI saw its net income attributable to parent firm jump by 52 percent to P3.9 billion.

—TYRONE JASPER C. PIAD