Andrew Tan's Alliance Global Spending P60 Billion Across Its Businesses This Year
Alliance Global Group Inc., the holding company of billionaire tycoon Andrew Tan, has announced it is earmarking P60 billion in capital expenditure to spend on a variety of expansion projects across its businesses this year.
The amount represents a 33-percent increase compared to the group’s CAPEX last year.
Taking a lion’s share of the budget, or about P50 billion, is AGI’s real estate arm Megaworld, which posted a 36-percent increase in net income in 2021 compared to the previous year. Megaworld intends to launch as many as 14 new projects this year, which it says has a combined value of P30 billion. It also plans to work on four new townships that will cover a combined total of about 500 hectares in Metro Manila, CALABARZON, and Mindanao.
The company’s hospitality and leisure division Travellers International will get P4 billion for its ongoing expansion projects. Travellers reported a 26-percent increase in gross gaming revenues (GGR), led by its VIP business, as health restrictions have been eased. Its flagship Newport City project in Pasay City, home of multiple luxury hotel brands such as Marriott Manila, Sheraton Manila, Hilton Manila, and Hotel Okura Manila, is now fully open for leisure stays as well as MICE (Meetings, Incentives, Conferences and Exhibitions).
Another P3 billion is earmarked for AGI’s liquor business’s ongoing expansion projects overseas. According to the company, Emperador continued to grow during the pandemic, posting record revenues of P55.9 billion and profits of P10 billion. The growth was led by international operations. Emperador owns Whyte and Mackay (whisky), and Bodegas Fundador (brandy).
The remaining P3 billion is set aside for the expansion of its quick service restaurant business. AGI has a long-term partnership with Golden Arches, which Is led by its chairman and founder George Yang, and together, the two companies own the McDonald’s franchise in the Philippines. AGI said it would use the CAPEX to open as many as 45 new McDonald’s stores, a 25-percent increase compared to the 36 new stores it opened in 2021.