MANILA, Philippines, July 1, 2019— Alliance Global Group, Inc. (AGI), the investment holding company of tycoon Dr. Andrew L. Tan, is allocating P410-billion for capital expenditures (CAPEX) program from 2020 to 2024.

“Our five-year capital spending program signals our ongoing thrust to pursue an aggressive but organic growth strategy for our various businesses. It is our intention to continue to reinvest in these businesses to sustain our growth pace,” says Kevin L. Tan, chief executive officer, AGI.

The planned capital expense is higher when compared to P377-billion allocated in 2015-2019, inclusive of this year’s budget of P85-billion. It is even significantly bigger than P218-billion set aside in 2010-2014, at a time when AGI forayed into the international market.

The bulk, or around 73% of the Group’s CAPEX in the next five years, will be allocated for Megaworld Corporation, AGI’s property arm and the country’s largest developer of integrated urban townships. This will fund the company’s new and ongoing township development projects, planned residential launches and continued buildout of offices, lifestyle malls and hotels throughout the country. A portion of the budget will also be allocated for the company’s landbanking strategy in order to add to its current 4,700 hectares of developable land.

Travellers International Hotel Group, Inc., owner and operator of Resorts World Manila (RWM), will account for another 15% of the Group’s five-year CAPEX. The amount will fund largely the development of its next integrated resort, Westside City Resorts World, on a 30.5-hectare property within the PAGCOR Entertainment City complex in Paranaque. Travellers will commence with the construction of the casino and mall once piling works are completed.

About 5% of the Group’s CAPEX, on the other hand, will be allocated to Golden Arches Development Corporation (GADC), which holds the exclusive franchise to operate quick service restaurants (QSR) in the Philippines under the “McDonald’s” brand. The company continues to undertake a store expansion program that will add about 50-60 McDonald’s stores a year, from its current 633 stores. McDonald’s is also at the forefront of revolutionizing customer experience in the QSR segment with the rollout of NXTGEN stores which feature innovations such as the self-ordering kiosks, modernized menu boards and card payment acceptance. GADC plans to roll out more NXTGEN stores this year, from its current 62 stores throughout the country.

Emperador Inc., the world’s largest brandy company and owner of the fifth largest Scotch whisky manufacturer in the world, will account for 4% of the Group budget to fund its largely maintenance CAPEX. After its heavy investments since 2014, Emperador is now pursuing an organic growth strategy by fortifying its global distribution system for its premier whisky products under Whyte and Mackay, as well as its Spanish brandy products under Bodegas Fundador. The company is also expanding its product mix in the domestic market with the recent introduction of The Bar Premium Gin, while it maintains market leadership in the brandy segment with its flagship Emperador Brandy.

The balance of 3% will be allocated for Infracorp Development Inc. largely to fund its infrastructure projects, the 2-kilometer Fort Bonifacio-Makati Skytrain monorail project, and the rehabilitation of the Ninoy Aquino International Airport. Both are awaiting NEDA approval and are looking to start project implementation soon.