Andrew Tan's Alliance Global hikes 2013 spending to P40-B
MANILA, Philippines - The holding firm of tycoon Andrew Tan, Alliance Global Group Inc., will hike capital spending to over P40 billion next year as its units continue to expand on the back of the strong economy.
“All the units combined, we should be incurring a capital expenditures of more than P40 billion for tourism, real estate and consumer goods. All of them are expanding. We are very bullish about the economy. This year we are doing very well. I think next year we will continue to do very well,” Tan, chairman of the company, said at the sidelines of the Philippine Stock Exchange 2012 Bell Awards.
Alliance Global's 2012 capital expenditures were set at P35 billion.
Alliance Global owns property giant Megaworld Corp., food and beverage firm Emperador Distillers Inc., McDonald's operator Golden Arches Development Corp., tourism developer Global Estate Resorts Inc., and casino operator Travellers International Holdings Inc.
In the first 9 months, the group posted P9 billion core net income, up 33% from P6.75 billion recorded in the same period a year ago. This was boosted mainly by the strong performance of Megaworld.
Tan remains bullish on the prospects of the real estate company, due to the low interest environment and despite concerns of possible oversupply.
“At the moment, what we can see is a lot of our buyers are end-users. It's not speculative in nature. These are people who need a home and they buy a home. They are putting their money in a quality home and they are doing their best to keep up with their amortization.”
Tan also expects its casino unit to register higher growth next year with the opening of its gaming complex in the 120-hectare Entertainment City project of the gaming regulator. - Rappler.com