AGI sets 1240-B capex over 3 years

Alliance Global Group, Inc. (AGI), the investment holding company of tycoon Dr. Andrew L. Tan, is allotting 1240 billion for capital expenditures over the next three years (up to 2020) to ensure its organic growth.

The firm said its capex is intended to launch more development projects around the country and further increase its leasing capacities for its office buildings and lifestyle malls.

It will also allow the firm to expand its land bank as well as hotel and integrated resorts operations, and to increase the number of McDonald 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,” said AGI Chief Executive Kevin L. Tan.

AGI’s P240 billion capex will be utilized to further expand and future-proof its businesses to sustain the Group’s long-term growth.

Its newly-formed subsidiary, Infracorp Development Inc., is set to undertake rail infrastructure projects. It is also a party to the mega-consortium that proposed to rehabilitate and upgrade the existing Ninoy Aquino International Airport at a cost of 1102 billion.

By 2020, Megaworld is looking to grow its office and mall gross leasable area to two million square meters as it targets to bring its rental income to 120 billion.

AGI President Kingson Sian said that, for office leasing alone, the firm is set to complete a total of 218,000 square meters of new office space to hit 1.5 million sqm by 2020.

Projects set to open include Worldwide Plaza, World Commerce, and One Le Grand which are all in Taguig.

AGI, through Travellers and Megaworld, is also aggressively expanding its hotel portfolio with the objective of bringing its total room capacity to 12,000 keys in the next few years, in support of the government’s thrust to reach its 10 million tourist arrivals target by 2020.