Lebanese Company for the Development and Reconstruction of Beirut Central District,
SOLIDERE, is an association of property rights holders and investors, whose contribution
make possible the financing and execution of the required infrastructure allowing the
project to move forward.
A joint-stock corporation established formally
on May 5, 1994 following a statutory meeting of its shareholders, SOLIDERE's share capital
is made up of common stock of two types totaling $1.82 billion:
- 1) TYPE (A) SHARES:
- Issued to property owners in the BCD and individuals or corporations with
rights therein, against their real estate property contributions. Following initial
evaluations by appraisal committees, a Higher Appraisal Committee placed the final figure
on all private real estate value in the BCD at US $1.17 billion.
- Distribution of (A) shares
- The proportionate distribution of type (A) shares to former property rights
holders in the BCD takes place through distribution Committees appointed by the
- 2) TYPE (B) SHARES:
- Issued to investors against their cash subscriptions in the amount of $650
- SUBSCRIPTION AND TRADE
- A three-month subscription offer for 6.5 million shares, at par value of US$100,
came to a close on January 10, 1994 and although restricted to four categories of
investors, the share offering was oversubscribed by 142 percent.
- ELIGIBLE SUBSCRIBERS WERE SUBJECT TO THE FOLLOWING
- A- Right holders (proprietors, tenants, lease holders) in the BCD,consisting
of people of varied nationalities
nationals and purely Lebanese companies
C- The Lebanese state, Lebanese public institutions and the
D- Persons of Lebanese origin, public and semi-public Arab
institutions and nationals of Arab countries.
A number of characteristics distinguish SOLIDERE shares from
those of other corporations formed under the Lebanese Code of Commerce:
Because of the international scale of the project, it was considered desirable
to denominate the shares of the Company in U.S. dollars.
No individual or corporation can own, directly or indirectly, more than 10
percent of the total capital of the Company.
Dividends paid to shareholders are exempt from income tax in the first 10 years
following the date of incorporation of the Company. Capital gains arising from the
exchange of shares are also exempt. In addition, SOLIDERE is exempt from income tax for a
period of 10 years from the date of its incorporation.
On June 23, 1994, a secondary market allowing for trade in SOLIDERE shares
became operational. This market is under the supervision of the Bank of Lebanon and
organized by the Societe Financiere du Liban, an organization comprising 46
Lebanese banks. Brokers representing 32 banks and financial institutions participate in
This market makes possible trading in SOLIDERE shares and provides other
Lebanese companies with the opportunity to offer shares for trade and to enter the market