The Villar group of companies led by billionaire Manuel Villar plans to spend P175 billion in three years from 2018 to 2020 to aggressively expand its housing, retail, education, hotel and health businesses.
Villar, who now focuses on expanding his business empire after becoming a senator, said about 60 percent of the programmed three-year capital expenditures would go to real estate development and the balance for the leasing, retail business and new businesses such as hotels, schools and hospitals.
Villar said the group in 2018 would spend P50 billion.
“We are very bullish in the coming year as we take advantage of the various collaborations among our companies in addition to the sustained sound Philippine macroeconomic fundamentals,” Villar said.
“Our various expansion programs implemented in our property development including memorial parks, malls and retail businesses are yielding positive results and are taking advantage of the significant synergies that we have unlocked,” he said.
The group’s listed property firm, Vista Land & Lifescapes Inc., will pursue a plan to put up malls and residential projects in the countryside as it aims to deliver double-digit growth in the next three years.
All Value Holdings Corp., Villar’s retail holding firm, will also aggressively expand by adding more supermarket, bakeshop and coffee shop outlets across the country.
Funding for the group’s capital spending will primarily come from internally-generated cash and borrowings, he said.
“We still have room for a pubic offering by Starmalls. Vista Land could raise more from bonds,” Villar said.
Villar said he was also considering an initial public offering for its retail businesses, either all under All Value or individually, once the numbers reached a critical mass and their profitability was already proven.
All Value businesses include AllHome, a home improvement and builders’ center; All Day Supermarket; All Day Convenience Store; Coffee Project; Bake my Day pastry shop; and new concepts such as All Sports and All Toys.
Villar said to serve the growing needs of Vista Land’s residential developments, the group also planned to grow Georgia Academy from three schools now to 13 next year.
The group is also set to open more hotels over the next three years under the Mella brand.