Alliance Global allocates P240-B capex until 2020

MANILA, Philippines — Alliance Global Group Inc., the investment holding company of tycoon Andrew Tan, announced on Tuesday a capital expenditure (capex) of P240-billion spread over three years to ensure the firm’s “organic growth.”

In a disclosure to the stock exchange, AGI said its planned capital spending until 2020 is intended to launch more development projects around the country and further increase the company’s leasing capacities for its office buildings and lifestyle malls.

The P240-billion capex is also expected to facilitate the expansion of AGI’s land banking, hotel and integrated resorts operations. The Tan-led company likewise seeks to increase the number of McDonalds stores nationwide, in addition to funding maintenance capex.

“We are mindful of the current domestic and global economic developments, but we remain cognizant of the vast opportunities in the market; hence, our continued aggressive capital spending,” AGI Chief Executive Officer Kevin Tan said.

During the last ten years, AGI has allocated around P470 billion in capex, 80 percent of which was spent over the last five years as the company embarked on an ambitious expansion program.

On Tuesday, shares in AGI were down 8 centavos or 0.64 percent to close at P12.36 each at the Philippine Stock Exchange — Ian Nicolas Cigaral