George Ty?s holding firm allots P44.7B for 2016 capex
GT Capital Holdings Inc. of Bilyonaryo George Ty has earmarked P44.7 billion for its capital expenditures this year primarily to support the growth of its banking, power generation, automotive and real estate businesses.
Funding for this year?s capital spending will be sourced through internally generated fund and debt, the company in a regulatory filing said.
GT Capital said it has allotted P10 billon for additional equity infusion in mass housing developer Property Company of Friends Inc. (PCFI)
It has also set aside P5.6 billion for land banking, land development and investment properties of PCFI.
The conglomerate current owns 22.68 percent stake in PCFI. The group however plans to exercise its option to increase its direct shareholding in the company to 51percent within the next three years.
The group has set aside P8.3 billion primarily for its power generation unit Global Business Power Corp., (GBPC) to finance for the phase 2 expansion of Panay Energy Unit 3 and venture into biomass.
In 2014, GBPC signed an agreement with Roxas Holdings Inc. for the development of a 40-megawatt biomass project in La Carlota City, Negros Occidental.
GT Capital also earmarked P7 billion for its automotive business under Toyota Motor Philippines Corp., (TMP) which planning completely knocked-down upgrades and stockyard expansion.
TMP in 2015 sold a record 125,027 units, an 18 percent increase from that of the previous year, resulting in a nine percent growth in consolidated sales to P114.3 billion versus P104.9 billion in 2014.
Banking unit Metrobank will also spend P7 billion in branch expansion and ATM network enhancement while Federal Land has budgeted P2 billion for capital spending for 2016 primarily to finance office and retail projects.
The remaining amount has been appropriated for its insurance and Toyota dealership units.
The company?s consolidated net income jumped 32 percent to P12.1 billion last year from P9.2 billion in 2014 while consolidated revenues rose 13 percent to P159.2 billion from P141.1 billion.