MANILA, Philippines — Andrew Tan-led Alliance Global Group Inc. (AGI) is injecting P2.61 billion into subsidiary Megaworld Corp. to fund the latter’s expansion plans that include development of townships and residential projects.
In a disclosure on Thursday, AGI announced that its board of directors had approved the subscription of 1.38 billion common shares of Megaworld for P1.90 apiece, reflecting a 5-percent premium over the latter’s 30-day volume weighted average price.
The shares will be issued out of the P5.5 billion increase in the authorized capital stock of Megaworld.
“The subscription is made by AGI to support growth and future business expansion of Megaworld in line with the latter’s strategies and directions,” AGI said.
READ: Megaworld earnings up 8% on robust sales
AGI CEO Kevin Tan previously said Megaworld had earmarked P55 billion in capital expenditures for their townships, residential projects, investment properties, and land acquisition. This budget forms part of its P350-billion, five-year capex program that started last year.
Offices, malls
Megaworld aims to increase its leasing portfolio to 3 million square meters (sq m) by 2030 for both offices and malls.
New office stocks are expected to rise in its townships in Bulacan, Pampanga, Cavite, Bacolod and Metro Manila.
Meanwhile, Megaworld is slated to open up more retail spaces in its lifestyle mall properties in Cavite, Rizal, Pampanga, Bulacan, Bacolod, Cebu, Davao, Boracay and Palawan.
Last year, the gross leasable area (GLA) of its office segment grew by 69,000 sq m to 1.5 million sq m following the turnover of the International Finance Center in Uptown Bonifacio.
Its mall segment, meanwhile, saw GLA expand by 33,000 sq m to 517 sq m with the opening of four new retail spaces.
Megaworld is set to complete about 180,000 sq m of office space and 100,000 sq m of mall and commercial retail areas by the end of this year. —Tyrone Jasper C. Piad