The Alliance Global Group, controlled by billionaire Andrew Tan, is projected to invest 60 billion pesos ($1.1 billion) this year to expand its real estate, distillery and fast-food chain operations, amid signs of it that the economy is recovering from the slowdown caused by the pandemic over the past two years.
The company is stepping up its expansion plans as Alliance Global’s businesses recover strongly. The group’s net profit rose 92% year-on-year to 16.9 billion pesos in 2021, while revenue rose 19% to 152.8 billion pesos. The momentum has continued this year, with net income rising more than 50% in the first quarter.
“We believe that the sectors in which we operate stand to benefit greatly from the pent-up spending resulting from the continued reopening of the economy,” Kevin L. Tan, CEO of Alliance Global and eldest son of the Chairman and the group’s founder, Andrew Tan, said in a statement on Thursday.
The majority of Alliance Global’s investments will fund the real estate projects of its flagship company, Megaworld, which is spending 50 billion pesos to fund new developments, including four townships in Metro Manila, southern Luzon and Mindanao. Its Travelers International hotel unit will spend another 4 billion pesos to expand its leisure and entertainment offering after its casino’s gross gaming revenues improved following the easing of Covid-19 restrictions.
The remainder of the budget will be used for liquor maker Emperador’s ongoing expansion projects, as well as increasing the presence of Golden Arches – Alliance’s Global’s joint venture with Filipino franchisee George Yang – with plans to open 45 new McDonald’s locations this year at the around the world spent country.
Alliance Global is chaired by tycoon Andrew Tan, the son of a factory worker who made his fortune developing high-end condominiums and commercial properties in Metro Manila in the 1990s. He is also Chairman of Emperador and Megaworld, which over the past three decades have built a portfolio of condos, offices, hotels, malls and townships nationwide. With a net worth of $2.6 billion, Tan was ranked 8th when the list of the Philippines’ 50 richest was last released in September.