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AGI eyes doubling of profit to P6.4B

06/21/2011 [ ]

Property-based conglomerate Alliance Global Group Inc. (AGI) is targeting to double its profits to P6.4 billion due to robust performance of its real estate business.

AGI president Kingson Sian said growth drivers will be in all segments, from local VIPs to the mass market. “Megaworld will still be the main growth driver especially if Megaworld does profit of P6 billion,” he said. Last year, Megaworld’s income was at P3.2 billion.

Meanwhile, Sian said the company is drafting the master plan for AGI Pagcor City. “But again for us, we have two sides. The other side (Newport City) is doing quite well so we will continue to develop that,” he added.

Sian said they are currently building a convention center/ballroom in Newport City which is noted to attract more people to come. “The lot is 1.2 hectares (which is set to) be the biggest ballroom. We are designing it first as a ballroom but it can be converted to a convention center,” he said. Excavating and construction has started and operations will start in 2014.

In another development, he indicated plans to put in a new amusement center above the mall, near the cinemas which will cater to young kids and to young adults.

He added that AGI still has about 4 hectares to develop in the commercial area. “We will probably sign up another five-star hotel soon. Eventually we will have within 2200 to 2500 hotel rooms,” he said. He noted that by October, they will have about 1,500 rooms with the new hotel Remington which will have 712 rooms.

With all the new developments finished, Sian said they may be able to hit foot traffic of 25,000 per day, even 30,000 per day, when the ballroom and convention center is finished. He noted that this year, they are hitting 15,000 per day.

With regard to the market of gaming in the country, Sian noted that the market is big enough despite another gaming company building another casino in Pagcor City, and without Macau and Singapore cannibalizing. “Asia is the place for gaming because it has a large population and the fastest growing economy so wealth creation in Asia is the largest in the world,” he said.

For the Real Estate Investment Trust (REIT), Sian said they will let other companies go first. “We will let them go first let us see how it performs.We can do REITs if it goes well,” he noted. Danessa O. Rivera

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