Alliance Global Group Inc., the holding company of tycoon Andrew Tan, is allocating P150 billion for its 2016 and 2017 capital expenditures to accelerate the expansion of property, gaming and quick service restaurant businesses.
Alliance Global president Kingson Sian said in an interview following the annual stockholders’ meeting the bulk of the two-year programmed spending would be allotted for property unit Megaworld Corp., which planned to build more hotels, office and retail projects.
“We continue to be optimistic about what lies ahead. That is why we have kept an aggressive capex plan moving forward. In 2010 to 2015, we spent an aggregate of P270 billion for our expansion projects. We will spend more than half of that amount for 2016 and 2017 alone, proving our positive outlook for our business,” Sian said.
Sian said the group planned to ramp up the development of office space to an average of 165,000 square meters annually to bring the total 1.5 million sqm by 2020.
The conglomerate also plans to quadruple the number of hotel rooms to 12,000 by 2020 from the current 3,000 hotel rooms to maintain is position as one of the leading hotel operators in the country.
Sian said for retail developments, the company aimed to launch 80,000 sqm of commercial space annually to hit 633,000 sqm by 2020.
Alliance Global’s leisure and gaming firm Travellers International Hotel Group Inc. will also start developing its second integrated resort and gaming complex called Westside City within the government sponsored Pagcor Entertainment City.
Westside City will be the fourth gaming complex to rise in Pagcor Entertainment City.
Alliance Global said its quick service restaurant business through Golden Arches Development Corp. would also spend heavily to increase the number of McDonald’s stores nationwide.
GADC is poised to hit its 500th store this year and is looking to grow the number to 900 stores over the next few years.
Alliance Global said funding for the group’s two-year capital spending would come primarily from borrowings and internally-generated funds.
Sian said the group was very much optimistic about the growth of the economy under the current administration.
“We are a company that is very much invested in the country. While we recently went abroad for acquisitions, which is just a natural progression of the company, bulk of what we do is in the Philippines. Our capital spending is already laid out. we are not slowing down but in fact we are accelerating it. That tells you that we believe in the growth potential of the country,” Sian said.
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