Cosco Capital, Inc. (COSCO) and Puregold Price Club, Inc. (PGOLD) are allocating up to PHP 8 billion for capital expenditure next year to finance store and mall openings and land acquisitions.
Leonardo Dayao, president of Cosco and Puregold, said the group is setting aside up to PHP 5.5 billion for PGOLD’s 25 new stores programmed for next year, and PHP 2.5 billion for COSCO’s land acquisition and construction of community malls.
The PHP 8 billion capital expenditure (capex) will be sourced from Cosco’s fundraising in 2013 and from PGOLD’s internally generated cash flow from retail stores and bank lines.
For its 2015 capex, Puregold plans to spend PHP 2.5 billion for 25 new Puregold outlets, PHP 1.5 billion for two new S&R Membership Shopping malls set to rise next year, and PHP 1.5 billion for possible acquisitions.
As for listed holding firm COSCO, Dayao said the company is focusing on the acquisition of land and construction of 6 community malls over the next three years, amounting to PHP 2.4 billion.
Besides community malls, COSCO is also “interested” in looking at acquiring businesses in the hardware, pharmacy and home improvement segments.