Wednesday, May 21, 2014

Andrew Tan's holding firm posts 10.6% jump in Q1 profit

MANILA, Philippines – Alliance Global Group Inc., the holding firm of billionaire Andrew Tan, posted higher first-quarter earnings as the strong performance of its property, food and liquor businesses offset the revenue decline seen by its gaming unit.

In a disclosure to the Philippine Stock Exchange on Tuesday, May 20, Alliance Global reported that its net income in January to March jumped 10.6% to P3.94 billion from P3.56 billion in the same period last year.

It said net income grew as consolidated revenues went up 3.2% to P31.23 billion versus P30.26 billion a year ago.

Buoying revenues was the 19% growth in sales of goods, including consumer goods and real estate. Revenues from services fell 9% due to the 23% decline in gaming revenues.

The conglomerate said it would continue to adopt prudent measures to enhance financial sustainability and look for opportunities to grow its bottom line.

“All the business segments are expected to grow revenues and profits in line with targets,” Alliance Global said.

For the first 3 months, property unit Megaworld Corporation posted a net income of P2.69 billion, up 49% year on year, thanks to robust residential sales in its townships.

Liquor firm Emperador Inc. also ended the first quarter with a profit growth of 19% to P1.72 billion.

Gaming unit Travellers International Hotel Group
Inc. posted a net profit of P1.72 billion, up 73% from what it reported last year. The company managed to record strong earnings despite lower revenues. It said the volume of VIP players from overseas was low because of the "difference in international calendar of activities."

On the other hand, Golden Arches Development Corporation, the local franchise holder of fast food giant McDonalds, posted a 26% decline in first quarter net income to P171 million from P234 million on higher cost of raw materials.

As of end-March, Alliance Global had consolidated total assets of P336.4 billion, slightly higher from P332 billion at beginning of year. –

Saturday, May 17, 2014

SOON TO RISE on this site of the former Portofino Beach Resort in Mactan Island will be two beachfront hotels and a beach club that will form part of the 28.8-hectare The Mactan Newtown in Cebu, Megaworld's first township with its own beach.

The Mactan Newtown's beachfront has views of the Hilutungan Channel and Olango Island which is famous for its bird sanctuaries and mangrove forests 

Wednesday, May 14, 2014

Megaworld Corp. to build 2,000 hotel rooms in Cebu

Megaworld Corporation will be developing a total of five (5) luxury hotels that will rise in the next few years in a 28.8-hectare township Mactan Newtown located in in Lapu-Lapu City

In a press statement issued on Thursday, May 8th, Megaworld said it will spend Php8-billion to build the 2,000 rooms hotels. Amongst the first two will be built along Newtown Boulevard within five years, these are the Mactan Belmont Luxury Hotel and the Savoy Hotel Mactan Newtown, both of which will be operated by Prestige Hotels and Resorts Inc.

There will be also be two seaside hotels to be built in the area that was formerly Portofino Beach Resort. The said location will bebefit the hotel guest through its relaxing views of the Hilutungan Channel and Olango Island, which are best known for its bird sanctuaries in the mangrove forests.

The fifth one is a world-class luxury hotel of international brand is also expected to rise in the queen city of the south.

    "With the influx of more tourists to Mactan Island year after year, we hope to be able to offer more exciting facilities that will help further boost tourism in the region," Carmen Fernando, managing director of Prestige Hotels and Resorts, said. "Aside from local tourists, we hope to cater to foreign guests and visitors to The Mactan Newtown as well."

Andrew Tan-led Megaworld Corporation will also build a three-level lifestyle mall, which will be known as the Plaza Magellan, with an entrance plaza facing the famous Lapu Lapu Shrine, the site where the historical Battle of Mactan between Lapu Lapu and Ferdinand Magellan happened on April 27, 1521.

The plaza’s main feature will be a life-sized Spanish Galleon Victoria, a replica of the first vessel that circumnavigated the globe used by Magellan and his colleagues.

Plaza Magellan will also feature a museum dedicated to the life of Portuguese explorer - Magellan, at it will integrate Portuguese and Spanish artchitecture influences.

At the main entrance of Mactan Newtown, Megaworld will also build the Hawkers’ Gazebo, a covered food strip similar to the famous hawkers of Singapore.

As for now, the township has a total of 10 luxury condominium towers under the development: four towers for 8 Newtown Boulevard which is expected to be completed by first half of 2015; three towers for One Pacific Residence; and three towers for One Manchester Place.

By 2016, Megaworld is expected to open the Newtown School of Excellence, a state-of-the-art educational institution that will be supervised by the Lasallian Schools Supervision Office.

Megaworld will be seeding P30-billion to develop The Mactan Newtown in the next five to seven years.


Friday, May 09, 2014

Megaworld consolidates GERI holdings

Business tycoon Andrew Tan is further consolidating his property investments by folding all interests in Global-Estate Resorts, Inc. into Megaworld Corporation in a P10.43 billion transaction.

In a disclosure to the Philippine Stock Exchange, Megaworld said it has agreed to purchase the 49.20 percent stake of Alliance Global Group, Inc. (AGI) in GERI for a total purchase price of P10.43-billion.

Megaworld offered to purchase the GERI shares at P1.93 per share based on the 30- day volume weighted average price (VWAP) of GERI shares as of April 30, 2014.  The price is supported by a fairness opinion and valuation report issued by Navarro Amper & Co. (Deloitte).

After the acquisition, Megaworld will own 74.96 percent of GERI. The company will then initiate a mandatory tender offer for the remaining GERI shares held by minority stockholders.

The acquisition is set to complete the consolidation of all real estate businesses of AGI under the Megaworld brand, enabling the company to capitalize on real estate opportunities and to capture the expected growth momentum of its real estate affiliates.

Last year, Megaworld acquired Suntrust Properties, Inc., making it a wholly-owned subsidiary of the real estate giant. The company also owns 82-percent of Empire East Land Holdings, Inc.

“We are excited that this consolidation will enable us to further capture the growth in the tourism sector through GERI’s projects,” said Megaworld chief finance officer Francisco Canuto.

He added that “the exposure to the tourism industry will also complement our leadership position as the no. 1 landlord and developer of office spaces in the Philippines, specifically for information technology-business process outsourcing (IT-BPO) companies, which are considered key growth drivers of the Philippine economy in the next decade.”

Canuto said the consolidation will also increase Megaworld’s landbank to more than 3,900 hectares all over the Philippines.

GERI is the country’s leading tourism estate developer that has landmark tourism projects across the country such as the 150-hectare Boracay Newcoast in Boracay Island; the 1,149-hectare Twin Lakes in Tagaytay; the 170-hectare Sta. Barbara Heights in Iloilo; and the 561-hectare Southwoods City in the boundary of Carmona, Cavite and Binan, Laguna.(James Loyola)