Benpres Holdings Corp, the listed arm of the Lopez Group's holding companies, is putting its stake in Rockwell Land Corporation in the auction block to help settle its remaining debts.

At the sidelines of the company's annual stockholders' meeting on Thursday, president Angel Ong told reporters that company's 24.5 percent stake in the property firm is worth between P1.5 to P1.7 billion.

Rockwell Land converted Rockwell Center, a 15-hectare inner city project in Makati that was once a Meralco thermal power plant, in May 1995. Several high-rise luxury residential apartments, office buildings and a mall.

Outside of Makati, Rockwell Land developed the Rockwell Business Center and The Grove by Rockwell, both in Pasig City.

The property firm is owned Lopez's various companies: 24.5 percent by Benpres, 24.5 percent by First Philippine Holdings Corp. and 51% by Meralco, which contributed the land as its share of the equity.

Last year, Benpres sold its stake in First Philippine Infrastructure Corp, which is engaged in the tollroad business, to Metro Pacific Investment Corp., and its 18 percent stake in Professional Services, Inc., owner and operator of The Medical City. The proceeds of the sales--respectively worth over P6 billion and P600 million--have supported the previous buy-back of Benpres' debts.

Benpres' remaining interests will be in ABS-CBN Broadcasting Corp., and First Philippine Holdings Corp. (FPHC)

Benpres is 55 percent owned by the Lopez Inc., the other holding firm of the family that is privately held by the four branches of the Lopez second generation siblings--Oscar, Manuel, Precy Psinakis, and the heirs of the late Geny Lopez.

The listed holding firm ran into financial troubles after the 1997 financial crisis, which bloated $560 million foreign-denominated debts and brought the company to its knees. The loans were used to finance subsidiaries including telecommunications BayanTel and Maynilad Water. The company had to restructure its debts with a number of local and foreign financial institutions.

The additional assets up for sale--considered non-core businesses--are the last of the debt restructuring program. Remaining debts of $330 million are hoped to be settled by the end of this year either through the buy back of the loans at discounted rates or extension of the loans' face value to 12.5 years.

Ong said there were some creditors who have signed to stretch out the payment maturities while some agreed on a buyback.

“So far, we’ve already extended maturity payments for some $3.5 million and bought back about $80 million,” said Ong.

Meanwhile, Benpres chairman Oscar M. Lopez said the Lopez Group is in the process of a major reassessment of its investment strategies.

“What happened at Meralco is part of that reassessment that had been made necessary by our economic and political environment. And with the strong possibility that the prevailing economic crisis may soon ease, there will be plenty of opportunities that a newly focused and revitalized Lopez Group can take advantage of,” he said.