Conglomerate GT Capital Holdings Inc. of the Ty family said it earmarked between P17 billion and P19 billion for 2021 capital expenditures to fund expansion of banking, automotive and real estate businesses.
It said this year’s capital spending would be 85-percent higher than P9.17 billion it invested in 2020.
GT Capital said in a presentation during a recent analysts briefing it allotted P4.44 billion for property unit Federal Land Inc. for landbanking activities, retail and commercial development. Federal Land plans to launch three projects this year.
The group also budgeted P4 billion for Toyota Motor Philippines Inc. for its planned development of pre-delivery inspect facility.
The facility which has a pre-inspection and post-production installation capacity of 160,000 cars and 4,500 units stockyard capacity is expected to be completed by the fourth quarter.
The parent company will also spend P4.34 billion for land development in Cavite and acquisitions.
Banking arm Metropolitan Bank & Trust Co. will spend between P3 billion and P5 billion for improvement of information technology system.
It said the balance would be pent by other units in insurance, dealership and financing.
GT Capital also reported that Federal Land signed an agreement with a strategic investor in October for the joint development of a 100-hectare property in Cavite City.
It is also in talks with three parties for the joint development of another 300-hectare property also in Cavite.
GT Capital;s net income fell by 68 percent in 2020 to P6.5 billion from P20.3 billion in 2019 on the effects of COVID-19 on the group’s businesses
Core net income also dropped 53 percent to P7.4 billion from P15.8 billion in 2019 as consolidated revenues dropped 40 percent to P134.4 billion from P222.9 billion in 2019.
The group said it started seeing signs of improvement as net income in the fourth quarter surged by 378 percent to P3.3 billion from P500 million in the third quarter.