ALLIANCE Global Group Inc. (AGI) will spend P75 billion as capital expenditures for the year, a 19 percent increase from the actual spend of P63 billion in 2023 last year, according to Kevin Tan, AGI chief executive officer.
The capex plan reflects an eight-year high since AGI spent P77 billion in 2016.
“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,” Tan said at the company’s shareholders meeting yesterday.
Tan said bulk of the capex, at about P55 billion, will be allocated for the group’s realty arm under Megaworld Corp., which intends to expand its portfolio to 35 mixed-use developments mostly outside of Metro Manila.
Tan said Megaworld also plans to build lifestyle malls in Boracay, Cavite, and Pampanga and premium office buildings in Iloilo City, Bacolod, and Pampanga as part of the company’s plans to bring the combined gross leasable space for its office and mall developments across the country to 3 million square meters by 2030.
About P10 billion will go to Travellers International Hotel Groups Inc. for ongoing expansion mainly within its Newport World Resorts complex in Pasay City.
Travellers International is currently refurbishing the Newport Mansion that will feature all-suite rooms, garden villas, and bay suites. Part of the capex will also be utilized for the development of the commercial area in Westside City, including the construction of the Grand Opera House, theaters, and cinemas.
Tan said Emperador will utilize P6.5 billion for the ongoing expansion of its whisky operations under Whyte and Mackay.
The company is set to double the production capacity of the Dalmore Distillery before the end of the year. It is also expanding the maturation complex of the Invergordon Distillery, doubling its footprint to 92 hectares and building additional warehouses for whisky aging, Tan said.
“Aside from capacity expansion, the capex will also fund in part Whyte and Mackay’s sustainability goal to be carbon neutral by 2030. This includes the upgrade of its distillery to make operations more efficient and sustainable, building an anaerobic digestion bioenergy center, and a biomass boiler system,” he added.
The balance will be spent on the continued expansion of the McDonald’s network to bring its total number of stores to 800 this year.
