MANILA, Philippines – Andrew Tan-led Alliance Global Group Incorporated is spending more than P150 billion in capital expenditures from 2016 to 2017 primarily to accelerate expansion of its property, gaming, and quick service restaurant businesses.
Alliance Global president Kingson Sian said bulk of the two-year programmed spending will be for its property unit Megaworld Corporation, which plans to build more hotels as well as office and retail spaces.
“We continue to be optimistic about what lies ahead. That is why we have kept an aggressive capital spending plan moving forward,” Sian said.
“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,” he explained.
Sian said the group is planning to ramp up the development of office spaces to an average of 165,000 square meters (sqm) annually to hit 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 to maintain its position as one of the leading hotel operators in the country.
For its retail developments, Sian said the company intends to launch 80,000 sqm of commercial spaces annually to hit 633,000 sqm by 2020.
Alliance Global – through its leisure and gaming firm Travellers International Hotel Group Incorporated – will also start spending on the development of its second integrated resort and gaming complex called Westside City within government-sponsored Pagcor Entertainment City.
Westside City will be the 4th gaming complex to rise in Pagcor Entertainment City. (READ: Andrew Tan’s Manila Bay casino to open in 2018)
Alliance Global said its quick service restaurant business – through Golden Arches Development Corporation (GADC) – is spending heavily to increase its number of McDonald’s stores nationwide to ride on the overall improvement in consumer demand.
GADC is poised to hit its 500th store this year and is looking to grow the number to 900 stores moving forward.
Funding for the group’s two-year capital spending will primarily come from borrowings and internally generated funds.
Sian said the group is very much optimistic about the growth of the economy under the Duterte 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. – Rappler.com
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