Alliance Global Group Inc. (AGI) expects to register strong growth next year on the back of the robust contribution of its real estate and tourism ventures.
The Andrew Tan-led holding company expects its net income attributable to shareholders to increase by at least 38 percent this year to P6.62 from P4.8 billion last year.
“Because of the sheer momentum of the growth of the economy and the business itself, we believe we can do another 38 percent next year on top of [our performance] this year,” Kingson Sian, AGI president, told reporters on the sidelines of the firm’s annual stockholders meeting.
In the first semester, AGI’s profit hit P4.38 billion, up 36 percent from P3.56 billion last year because of the strong contribution of its units.
Sian said the holding firm’s property arm will continue to deliver the bulk of its revenues, followed by its fast-growing tourism ventures and its consumer businesses.
By next year, total cash resources of the group would amount to about P60 billion.
AGI’s real estate arm Megaworld Corp. experienced brisk sales take-up in its residential projects. The Megaworld group of companies, which also includes Empire East and Suntrust brands, have sold P33 billion worth of real estate projects in the first eight months.
For its other projects in Metro Manila, Megaworld plans to replicate the “live-work-play-learn” communities in Eastwood City. It has sold 7,000 condominium units in Eastwood City alone at par with the 15,000 units in Makati, Sian said.
The property developer will also take advantage of its huge land bank, which will be good for the next 15 years. It owns 105 hectares in Fort Bonifacio, 40 hectares in Manila, 25 hectares in Newport City, 25 hectares in Cebu and 54 hectares in Iloilo.
From its total leasable space of 450,000 square meters, Megaworld is looking to generate P3 billion in rental income from its office buildings and commercial outlets.
“By the end of 2010, we’ll have 384,000 square meters of office space, most of it leased up already,” Sian said.
Its upcoming projects include office developments Palm Bay along Roxas Boulevard and One Uptown Place in Fort Bonifacio in Taguig, and residential projects One Eastwood City and Two and Three in Central Makati.
Travellers International, a joint venture between AGI and Genting Hong Kong, is expected to make “substantial” contribution to the Philippine holding firm’s revenues this year following the first full-year operations of its integrated tourism estate Resorts World Manila.
Since opening in September last year, the entertainment facility has attracted 2.5 million tourists, mostly coming from Korea, China and Southeast Asia.
Through Travellers International, AGI will invest over $740 million until 2012 to develop Resorts World, which includes the 172 all-suite Maxims Hotel, the 342-room five-star Marriott Hotel and a budget hotel called Remington.
It will also build the four-star Hamilton Hotel, which will bring its total rooms to 1,800.
AGI’s food and beverage arm, Emperador Distillers Inc., will expand its production facilities because of strong demand. Emperador is also set to introduce new products under its flavored alcoholic drink brand ‘The Bar’, which has gained strong popularity among female and young adults.
“Emperador will continue to grow, if not reach a banner year this year,” Sian said.
Golden Arches Development Corp., the master franchise holder of McDonald’s in the Philippines, will open at least 25 stores next year. By yearend, it will have a branch network of 310 stores.
AGI plans to increase its dividend issuance to at least 33 centavos per share from 18centavos announced earlier.
AGI shares fell from P9.54 on Monday to P9.50 each on Tuesday.
For details on Megaworld projects, please contact Reby Ramirez @ +63 916.4044.555 / +63 922.883.9308 / +63 919.699.3572 or e-mail her at reby_ramirez@yahoo.com.
Source: Manila Times, 06 October 2010
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