MANILA, Philippines - Alliance Global Group Inc. is scaling up its capital expenditure program by around 15 percent next year to more than P40 billion as it hopes to take advantage of buoyant economic growth and rising consumer spending, its top official said.
On the sidelines of the Philippine Stock Exchange’s 20th anniversary and first Bell Awards for Corporate Governance Monday night, AGI chairman Andrew Tan said the programmed spending budget will be used to bankroll his real estate, fastfood, liquor and tourism businesses as the holding firm seeks to further grow its profit in 2013.
For this year, AGI expects its profit to rise 20 percent to over P10 billion.
Tan said the group is making a big push into the tourism industry, with plans to build 5,000 hotel rooms in its bid to become the largest hotel operator in the country.
AGI, through a joint venture with Genting Hong Kong Ltd., will start construction next year of a new gaming complex, Resorts World Bayshore, along Roxas Blvd. Estimated to cost around $1.1 billion, the 31-hectare project will offer 3,500 hotel rooms alongside leisure, retail, gaming and entertainment facilities.
Bayshore, which will be twice the size of the existing Resorts World Manila, is targeted for opening in 2016.
Tan said the property business would continue to account for majority of AGI’s profits as steady remittance inflows from overseas Filipino workers and a low interest rate regime continue to prop up real estate sales.
Real estate unit Megaworld, which pioneered community townships that incorporate the live-work-play-learn concept, is currently developing 10 large-scale projects in Metro Manila, Iloilo and Cebu as well as several residential projects in the Makati central business district and San Juan.
Even with the impending passage of the “sin tax” bill, which seeks to raise alcohol and tobacco taxes, Tan said he remains optimistic that hard liquor unit Emperador Distillers Inc. would perform well.