AGI to boost investments with P75 Billion CAPEX for 2024

Alliance Global Group Inc. (AGI), the holding company of tycoon Dr. Andrew L. Tan, has announced a substantial increase in its capital expenditures for 2024, aiming to sustain its growth momentum.

The conglomerate has earmarked P75 billion for capital spending this year, a 19% increase from its P63 billion expenditure in 2023, and the highest since its P77 billion investment in 2016.

AGI’s diversified interests span real estate, spirits manufacturing, leisure and hospitality, and quick service restaurants, with significant investments planned across these sectors.

“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 CEO Kevin L. Tan during the conglomerate’s annual stockholders’ meeting.

Focus on Real Estate Development

A major portion of the budget, approximately P55 billion, will be allocated to Megaworld Corporation, AGI’s property development arm. Megaworld plans to expand its portfolio to 35 townships this year, primarily outside Metro Manila.

The expansion includes residential and hotel projects in Iloilo and Boracay, new lifestyle malls in Boracay, Cavite, and Pampanga, and premium office buildings in Iloilo City, Bacolod, and Pampanga.

This expansion aims to bring the combined gross leasable space for Megaworld’s office and mall developments to 3 million square meters by 2030.

Enhancements in Hospitality and Entertainment

Travellers International Hotel Group, Inc. will receive P10 billion for its ongoing expansion projects within the Newport World Resorts complex in Pasay City.

This includes the refurbishment of the Newport Mansion and the development of the commercial area in Westside City, which will feature the Grand Opera House, theaters, and cinemas.

Expansion of Spirits Manufacturing

Emperador Inc. will invest P6.5 billion in expanding its whisky operations under Whyte and Mackay.

The expansion includes doubling the production capacity of the Dalmore Distillery and expanding the maturation complex of the Invergordon Distillery. The capex will also support Whyte and Mackay’s sustainability goal of becoming carbon neutral by 2030, including upgrades to its distillery operations and the construction of an anaerobic digestion bioenergy center and a biomass boiler system.

Growth of Quick Service Restaurants

Golden Arches Development Corporation (GADC), known as McDonald’s Philippines, plans to continue its expansion, bringing the total number of stores to 800 this year. This demonstrates the company’s commitment to reaching more Filipinos nationwide.

Record Performance and Commitment to Sustainability

AGI posted a record performance in 2023, with consolidated revenues growing by 15% year-on-year to P211.2 billion and pre-minority income rising by 20% to P30.3 billion. The Group’s attributable profit amounted to P19.6 billion, reflecting a 21% increase year-on-year.

“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,” added Tan.