Alliance Global Group Inc. (AGI) of businessman Andrew Tan earmarked P75 billion for 2024 capital expenditures, up 19 percent from P63 billion it spent in 2023 to support the expansion of core property, gaming and liquor businesses.
AGI said in a disclosure to the stock exchange Thursday this year’s programmed spending is the group’s highest since 2016 when it spent P77 billion.
AGI said the programmed spending would sustain its growth trajectory moving forward.
“AGI remains steadfast and dedicated to driving growth across all its business segments, mindful of its goal to elevate global consumer preferences through aspirational product offerings,” said AGI president and chief executive Kevin Tan during the conglomerate’s annual stockholders’ meeting.
It said of the P75 billion programmed spending for the year, P55 billion would go to property arm Megaworld Corp. which plans to expand its real estate portfolio to 35 townships this year.
Megaworld also plans to launch new developments mostly outside Metro Manila and hotel projects in Iloilo and Boracay.
It plans to build new lifestyle malls in Boracay, Cavite and Pampanga and start construction of premium office buildings in Iloilo City, Bacolod City and Pampanga.
Another P10 billion will be used by AGI’s gaming unit Travellers International Hotel Group Inc. for its expansion projects, mainly within the Newport World Resorts complex in Pasay City.
The company is currently refurbishing the Newport Mansion, a new hospitality haven that will feature all-suite rooms, garden villas and bay suites.
A part of Traveller’s budget will be used for the development of the commercial area in Westside City, including the construction of the Grand Opera House, theaters and cinemas.
Liquor unit Emperador Inc. will also spend P6.5 billion this year for the expansion of its whisky operations overseas.
“Our relentless pursuit of growth is also matched by our unwavering commitment to sustainability. We firmly believe that by harmonizing profitability with responsibility, we can pave the way for a brighter, more sustainable corporate landscape,” said Tan.
The balance will be spent on the continued expansion of the McDonald’s store network throughout the country to bring its total number of stores to 800 this year.
