Environmental
clean-up precedes waterfront development |
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SOLIDERE proceeded this
quarter with an important phase of the city center waterfront
environmental clean-up. The operation, led by Radian International
(US), covers 18 ha of land and involves five million cubic meters of
materials. Fairhurst International (UK) is construction manager.
The works are expected to be completed by the end of 2003.
The US$53 million project is partly financed by a
US$22 million syndicated loan about to be concluded with Citibank. A
US$27 million loan, with a guarantee from the US Export-Import Bank,
is awaiting approval.
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In the plant delivered in the fall by Duos
Engineering B.V. (Netherlands), materials are sorted for recycling
or treatment. This is followed by the crushing of inert materials,
with the composting of biodegradable materials taking place in
parallel. An on-site laboratory records biochemical analyses of
samples before and after treatment. Trees are growing in the nursery
in preparation for the 72,000 sq m waterside park. Backfilling is
continuing in the northern part of the new land. The civil works for
the marina have been completed, with the promenade to be delivered
in the new year. The completion of the sea defense structure in the
spring will be followed by the development of the marina facilities.
The area south of the Radian site, already
cleaned, planned and equipped with infrastructure, is the
object of important real estate development, including the twin
project of the Four Season Hotel and Marina Towers luxury
residential complex.
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Recovery
hopes for SOLIDERE |
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At the end of a difficult year, renewed optimism about SOLIDERE is
prevailing among public and private circles.
Just before Christmas, the President of the Republic General Emile
Lahoud made his first official visit to the city center, where he
was briefed about the project by vice-chairman Maher Beydoun and a
number of Company staff contractors. |
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The last
quarter had already witnessed serious endeavors on the part of the
authorities to resolve all outstanding issues with the Company. This
included administrative hurdles that were delaying the
implementation of some projects, both by SOLIDERE and other
developers.
Particular efforts were deployed to that effect
by Prime Minister Salim Hoss, Public Works and Transportation
minister Najib Mikatim Council for Development and Reconstruction
president Mahmoud Osman, Beirut Mahafez (governor) Yaacoub Sarraf,
Beirut Municipality president Abdelmonem Ariss and director-general
for Urban Planning Joseph Abdel Ahad, together with the staff of all
the above public agencies.
Favorable statements about SOLIDERE were made by
Finance minister George Corm, Beirut Stock Exchange president Fadi
Karam and fellow board members, Nabil Aoun, head of the
stockbrokers' committee, as well as a number of banks and investment
analysts. Optimism about the economy in general, and SOLIDERE in
particular, was fueled by improved prospects for the Middle East
peace process.
Reflecting this confidence, investors confirmed
their interest in acquiring and/or occupying property in the city
center, and a number of sales were realized at year-end.
- A property in the Zokak El Blatt area with 1,000 sq m floor was
sold to Mr. M.Y. Dogmoch, to serve as his private residence.
- Messr. Bechara Nammour and Sami Ghosn acquired four built lots
with 2800 sq m of floor space to develop a residential project
in the Saifi area.
- Six built lots and one empty lot were sold to Mr. Salim Khaireddin
in Wadi abou Jamil in the Minet El Hosn area. They will be developed
into a boutique hotel with 10,000 sq m floor space.
Mr. Khaireddin also purchased from SOLIDERE a
plot of land adjacent to a neighboring villa, which he had a
previously acquired from a third part for his residential use.
- The Company finalized the sale to Mr. Nemr Diab of an empty lot in
the Marfa' area, for a residential project along Park Avenue, with
13,000 sq m of floor space, extendable to 18,000 sq m.
The supply of residential space by SOLIDERE
has met with success, even in the recessive 1999 environment. All
restored properties are already occupied, and the launching of the
new Saifi Village apartments has elicited a very positive response.
This suggests the existence of a pent-up demand for the SOLIDERE
type of products, which is encouraging the Company to continue to
put similar products on the market. |
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Performance
of the shares during the 4th quarter |
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After reaching an all-time low of US$6, SOLIDERE shares turned
around decisively around the beginning of November.
Share A closed the quarter at a five-month high
of US$8 3/8, registering a 21.82% rise over the previous quarter
closing price.
Similarly, share B closed at a five-month high of US$8 1/2, 17.24%
above the previous quarter closing price.
The move came amidst some
positive economic and political news coming from the area.
The breadth of the market
improved likewise, as buy volume outnumbered sell volume by a 5 to 4
ratio. |
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SOLIDERE
Share A |
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SOLIDERE
Share B |
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Share
price (US dollars)
Trading volume |
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