By Zinnia B. Dela Peña (The Philippine Star) Updated January 15, 2010 12:00 AM
MANILA, Philippines - Rockwell Land Corp., the real estate development unit of the Lopez Group, may revive plans to go public depending on market conditions, according to a top company official.
First Philippine Holdings Corp. (FPHC) president Elpidio Ibañez said the firm is holding on to its stake in Rockwell and might even “consider pursuing the listing” through an initial public offering (IPO) of the property firm. FPHC owns 49 percent of the upscale property firm after purchasing the 24.5-percent stake held by Lopez holding firm Benpres Holdings Corp. in August last year for P1.5 billion.
The transaction was part of the asset divestment program of Benpres aimed at paring down debt to a more manageable level.
Power utility giant Manila Electric Co. owns the balance of 51 percent in Rockwell. Being related parties, both Benpres and FPHC secured a fairness opinion from a third party, CLSA Exchange Capital Inc., for this transaction.
The acquisition of an additional stake in Rockwell solidified the company’s strategic position in the real estate development firm. Rockwell Land has a strong brand and track record in property development, with Rockwell Center considered as one of the most successful inner-city community developments in the country.
Among Rockwell’s high-profile projects include the Rockwell Center in Makati, Rockwell Business Center in Ortigas and The Grove in Pasig.
The acquisition complements FPHC’s property holdings, through its subsidiaries, in an industrial park in Sto. Tomas, Batangas, its office premises at the Benpres building in Pasig City and in the Eugenio Lopez Center in Antipolo.
__________________________________________________________________
