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ALLIANCE GLOBAL Group, Inc. (AGI) is pushing the expansion of its real estate business into the provinces, banking on the continued economic growth in the regions.
AGI Chief Executive Officer Kevin Andrew L. Tan said Megaworld Corp. will be relaunching new projects in Boracay following its reopening last October, while also unveiling new projects in Cebu, Davao, Pampanga, and Bacolod.
“We’re going to be more aggressive now in the provinces because we see a lot of growth in the provinces… it’s very encouraging that’s why we want to continue the momentum in those regions,” Mr. Tan told reporters on the sidelines of the company’s media event last Dec. 17.
Global-Estate Resorts, Inc. (GERI), a subsidiary of Megaworld, is developing the 150-hectare township Boracay Newcoast which will include residential condominiums, hotels and a shophouse district.
Mr. Tan noted that Megaworld will also be launching more townships next year, in addition to the aggressive expansion of its office space leasing segment driven by the recovery of the business process outsourcing sector.
AGI will also restart the construction of its 31-hectare Westside City township in Entertainment City, Parañaque early next year, in time for a scheduled opening in 2021. AGI partnered with Malaysia’s Genting Group for the P121-billion project.
Mr. Tan said Westside City’s master plan was upgraded, given the competition of integrated resorts and casinos in the area.
“We’re going to be focusing quite a lot on entertainment because we discussed in the past we want to create this sort of ‘Broadway of Asia’ concept there. So we’re putting together theaters in one, because it’s growing and it’s fragmented all over so we’re looking at ways to integrate it into one development where we can put theaters and entertainment facilities,” Mr. Tan explained.
“I think in that respect, it becomes a little bit more different from what the others are offering, not just gaming.”
For the hotel segment, AGI will be launching two new hotels, namely Sheraton and Okura, within the Resorts World Manila complex in Pasay City. The company will unveil the Ritz Carlton in 2020.
The liquor business through Emperador, Inc. will introduce new products in 2019. The listed brandy firm launched The BaR Gin in the Philippines this year, while focusing on the expansion of its Emperador Brandy, Fundador Spanish Brandy de Jerez, and The Dalmore brands in the overseas markets.
Golden Arches Development Corp., the exclusive franchise holder of the McDonald’s brand in the Philippines, will also be opening 50 new stores next year.
For its infrastructure unit, Infracorp Development, Inc. looks to start construction of its two-kilometer monorail Skytrain by the fourth quarter of 2019.
The P3.5-billion project will link Metro Rail Transit Line 3’s Guadalupe Station to Megaworld’s Uptown Bonifacio township in Taguig City, cutting travel time to five minutes for up to 100,000 commuters per day.
AGI booked P12.06 billion in net income attributable to the parent in the first nine months of 2018, 18% higher year-on-year. This came on the back of an 11% uptick in gross revenues to P108 billion during the same period.
Shares in AGI fell 4.55% or 56 centavos to close at P11.74 each at the stock exchange on Wednesday.
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