Solidere
By Bahia El Yafi, Staff Writer

Beirut, Lebanon - No roads, electricity or water, no buildings, infrastructure or people… The holes and cracks in the buildings were abundant enough for one to think that the buildings were pieces of cheese eaten up by mice from every single angle. Within only 11 years, an extraordinary company was able to change this destroyed city center, to become one of the hottest sites in the Middle East.

On May 5, 1994, at the heart of Lebanon’s capital, Solidere, the Lebanese Company for the Development and Reconstruction of Beirut Central District S.a.l. was incorporated as a Lebanese joint stock company that was going to accomplish revolutionary actions for its 75 year contract. This company has enormous projects that cover around 4.69 million square meters of built up space; 40% of which are residential, 50% of which are commercial, and 10 % are for cultural and leisure services.

Solidere’s capital is made up of two types of common stock; type A shares and type B shares.  The former are shares of real estate property owners from the company and amount to $1.17 billion. As for the latter, they are shares of the investors who help in financing the launching of the company and amount to $650 million. No individual investor or corporation is eligible to own more than 10% of the total capital. Due to the international scale of the project, the shares of the company are denominated in US dollars. The secondary market of the company, supervised by the Bank of Lebanon, does exist, and this provides liquidity to the investors.

The reputable company has three main functions; infrastructure works, real estate development, and property management. First, Solidere is in charge of executing and financing all infrastructure work in the Beirut central district, including the treatment of land reclaimed by the sea, and the development of two marinas. Secondly, Solidere is responsible for the rehabilitation and restoration of preserved buildings that have not been renovated by their former owners, which add up to 831,000 square meters of land. The third function of Solidere is to manage real estate properties, buildings, and other facilities.

Solidere has several goals that it wishes to accomplish through its projects. Primarily, it wishes to revive Beirut’s unique role as the main financial, cultural, and recreational center in Lebanon, and provide attractive real estate development that compete with other urban centers in the region. Secondly, it aims at preserving the historical core of the city. Thirdly, it is responsible for the reconstruction of the old souks. Fourthly, it is accountable for its preservation of the residential neighborhoods such as Mar Maroun and Zkak el Blat, and the introduction of outdoor spaces in these neighborhoods in order to improve the standards of living. Finally, it is in charge of the development of a sea side park and cultural facilities that aim to become one of the major public and tourist attractions in the region.

Naming all the goals and objectives of a colossal company like Solidere is almost impossible. Mainly, this considerably young company has proven to be very efficient and effective towards its shareholders, its management, the Lebanese citizens, and the Lebanese government. No one can ever deny the tremendous effect the restoration of the down town area had on the Lebanese economy. There is no doubt that this company will achieve all of its goals and thus help the Lebanese economy emerge from the crisis it is currently in.

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