A p r i l - J u n e 1 9 9 9
Saifi Village marketing options
Saifi Village apartment blocks on Martyrs' Square
With delivery to start the summer of the year 2000, the Saifi Village apartments have already elicited serious declarations of interest, on the basis of the following marketing options by SOLIDERE:
...and on George Haddad street

Base price:
US$ 1,750/sq m; will increase US$50 per floor,
                    and individual apartment attributes.

 Option 1: Sale 
- Cash: 5% discount ie US$1,650 instead of US$1,750/sq m
- Finance: 25% minimum down payment
             75% financed over 7 years @ Libor + 3.6% maximum 10%
                     financed over 10 years @ Libor + 4.5% maximum 10%

 Option 2: Rental 
- US$85 to US$110/sq m/year including parking and storage.
- Up to 6 years term with break clause from end of year 3.
- Fixed rent first 3 years, then extended at +5% per year starting year 4.
- Common area changes maximum 10% of yearly rental.
- Rent payable quarterly in advance.
- Reservation deposit of 3 months rent turns into security deposit.
- Additional parking at US$1,200/space/year.

 Option 3: Lease with option to buy 
- Rent is increased by 15%.
- 3 years to exercise option.
- Price is indexed @ 6% per year starting second year.
- By end of year 3, either:
  a) Exercise option and all payments, excluding Common Area
      Charges, will apply towards 25% minimum down payment
      - Pay the balance in cash and qualify for a discount of 55
      - Finance 75% and apply the terms of Option 1 above.
  b) Lease extends for another 3 years without the option to buy
      - Rent is indexed @ 5% per year from year 4 onwards.

Modifications and alterations policy

 Option 1: Modifications allowed; cost will be added to price of apartment.
Payment for apartment, including alterations, follows schedule agreed in sale agreement. Any further modifications requested after signature of sale agreement to be paid prior to execution.

 Option 2:  Modifications limited to color of finishes from choice offered by SOLIDERE. Applies if rent is signed prior to commitment of choices to contractor.

 Option 3: Modifications allowed according to the following:
Within one apartment: limited modifications may be accepted up to the date when choices must be transferred to contractor.
Heavy partition and layout modifications or linking of two independent apartments: must purchase apartment.

Waterfront Projects
Marine works
Civil works for the western Marina breakwater and the promenade along the marina were delivered
in June. Of the eighty caissons constituting the second defense line and planned to provide a seaside promenade, fifty-six caissons have been slided in the sea.

Marina design

The contract for the conceptual design of the western marina was awarded in May to the American architectural firm Sasaki, in joint-venture with Parsons Brickenhoff (US) and the Lebanese firm IDEA.
The design includes landscaping, parking and marina accommodations and a concept for clubhouse.
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SOLIDERE general meeting
The annual shareholders' ordinary general meeting, presided by SOLIDERE chairman and general manager Nasser Chammaa and attended by the board of directors, was held on June 8, 1999.
The general meeting took the following resolutions:
  - to approve the auditors' report and the financial statements for 1998.
  - to transfer 10% of the year's net income to legal reserve, in accordance with
    article 58 of the Company regulations, and to transfer the undistributed 1998
    net income to retained earnings.
  - to grant the chairman and members of the board of directors the
    authorizations stipulated in articles 158 and 159 of the Commercial Code.
  - to clear the chairman and members of the board of any liability for matters
    relating to the management of the Company in 1998.
More activities in the BCD
Mr. J.P. Selwan purchased a plot
of land from SOLIDERE in
Minet El Hosn, for a 3,500 sq m development including a large Sports et Loisirs store.
The American Community School  (ACS) has rented for its staff seven apartments in a SOLIDERE building

Mr. J.P. Selwan with chairman-general manager Nasser Chamma
located at Zokak EL Blatt. A variety of newcomers recently opened their doors in the city center. They include Banque Misr Liban and Yamout Optical on Foch street, Banque du Liban et d'Outre-mer on Maarad street, Teatro café on Riad El Solh Square, and Invsetment and Development Authority of Lebanon (IDAL) in the Nejmeh Square area.
Financial research
In its June 1999 research update on SOLIDERE, Merrill Lynch International has retained its long-term Buy and medium-term Neutral recommendation.
Through revising downwards its earnings forecasts for 1999, the report confirms earlier valuations by

Mrs. C. Bashur, head of ACS, with SOLIDERE vice chairman M. Beydoun and deputy-general manager A.H. Mansour.
Merrill Lynch of the company's share at US$18 and notes that "the stock is still trading at a 50% discount to our estimated NAV".
 Performance of the shares during the 2nd quarter

 SOLIDERE shares rallied to higher levels around the middle of the quarter,
 after having reached a low of US$6
7/8  for share A and US$71/8 level for
 share B. Buy volume outnumbered sell volume. Both shares stabilized at their
 new higher levels until the end of the quarter. Share A closed at the end of the
 previous quarter. Share B closed at US$8
5/8 , representing a 7.8% rise
 compared to the previous quarter closing price.



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