Solidere offers unique investment opportunities in Beirut City Centre

A mixed-use development, the Beirut City Centre covers over 191 hectares of prime land, of which one third is reclaimed from the sea. For the project, Solidere is developing 4.69 millions square metre of built-up-space featuring 40 per cent residential, 50 per cent commercial and offices and 10 per cent hotels, cultural and leisure services. The 75-year project completed Phase One of development this year involving installation of new infrastructure, utilities and reconstitution of the public domain.

Mounir Douidy, General Manager of Solidere, who unveiled the company's new sales and financing schemes at a press briefing held in Dubai, said that Beirut City Center offers a wide choice of investment opportunities for regional and international investors. He said that investors could purchase land for development or buy a range of properties, including hotels, offices, other commercial space and residences, for use or rental purposes. They could also buy into real estate funds investing in properties, he added.

Solidere, which is also known as The Lebanese Company for the Development and Reconstruction of Beirut Central District (BCD), marked its debut at Cityscape, the region's largest property show taking place at Dubai International Exhibition Centre from November 29- December 1, showcasing the prestigious "Beirut City Centre" project.

Elaborating upon the development's unique investment environment, Douidy said: "Beirut City Centre is emerging as one of the favourite investment destinations in the Middle East and one of the ways of participating in the reconstruction process is through the acquisition of Solidere shares or GDRS."

Traded on the Beirut Bourse, Solidere is also listed on the London Stock Exchange. It will also be listed on the Kuwaiti Stock Exchange by early 2005.

Starting June 2004, the company introduced an innovative "Share- for-land" scheme allowing investors to benefit from a discount of up to 15 per cent on the land sale price, provided 30 to 40 per cent of the reduced price were settled by ceding an equivalent amount of Solidere shares with the possibility of settling 10 per cent in cash. Under the existing land scheme, Solidere provides up to 75 per cent of finance over a period of five years.

Another scheme gives the right to investors who have purchased Solidere shares in bulk to sell them back to the company.

Pointing to financing schemes, Douidy said that the company provides financing for 7-10 years at competitive interest rates, whereas in the case of rentals, investors have the option to purchase the property in three years.

Other investor friendly programmes include the option to purchase treasury shares by using put option, he added.

Solidere is the first company in Lebanon to have achieved securitisation for its treasury shares. Other corporate transactions featuring discounting of notes and securitisation of leases form part of the unique financial arrangements drawn up by the property major to provide optimum flexibility and convenience to its investors.

"Acclaimed as a model for sustainable urban development offering world-class amenities, the Beirut City Centre has already attracted a tremendous response from the regional and international investor community. These new sales and financial arrangements will only serve to further enhance the value of property in the Beirut city centre in the coming years and will generate a positive impact upon its final results and the company's share performance," said Douidy.