A second major property development project to take place in Beirut City Center has been announced at a press conference in Kuwait City, hosted by the Kuwaiti Investors Group comprising Al Sayer Group and Al Daw Investment Company, and in the presence of Dr. Nasser Chammaa, Chairman of Solidere - The Lebanese Company for the Development and Reconstruction of Beirut Central District, s.a.l..
Strong of its previous successes, Solidere is again proud to take part in the launching of another major property development whose total investment value exceeds of US $1,1 billion. This new project comes as part of the development of Martyrs’ Square Grand Axis in the Beirut City Center, which had called for the organization of an International Urban Planning Design Competition that resulted in the participation of over 220 architects and architecture firms, and was won by word renown firms.
The project, called “The Phoenician Village”, will be developed on a land area of 20,000 square meters, with building rights of 206,000 square meters to create a mixed-use development including residential, commercial, entertainment and business centers. The project is located next to one of the distinguished historical surroundings within the Beirut City Center, and will overlook the Mediterranean sea and Lebanon’s breathtaking mountain views.
During the press conference, Dr. Nasser Chammaa commented that “the project constitutes the evidence of the growing confidence in investing in property development projects in the Beirut City Center, and in channeling regional capital for property development in our project, reflecting the significance of Beirut as a City for all Arabs.”
Furthermore, most of the developers who invested in buying property in the Beirut City Center were able to sell their projects in a very short time and with excellent returns on investment, thus proving that Beirut has regained its role and status. All this is a result of Solidere’s achievements in increasing the demand for property development in downtown Beirut.
Solidere recently announced profits of US $108.5 million for 2005, representing a 100% increase on the financial results of 2004. The tremendous growth in land sales during the first quarter of 2006 resulted in land sales valued at US $1.1 billion, which exceeds by 4 times the value of its 2005 sales figures. In addition, further land sales transactions amounting to US $300 million are currently under negotiation.
Dr. Nasser Chammaa also announced that as a result of this incredible success in property development and land sales, the Company’s profits will be strengthened in the coming years. Based on the good results achieved in 2005, “Solidere will be making a dividend distribution, exceeding previous dividend distributions, after the General Assembly meeting in June 2006. Simultaneously, the Company’s Board of Directors has recently decided to propose a share buy-back program, whereby the Company will be buying part of its own shares. These shares will subsequently be cancelled, with a view to increase the value of the remaining shares, enhance confidence in the share on the market, and improve the return to investors in the future.”
This new mega-property development project will no doubt support and strengthen the investors trust in Beirut City Center, and will encourage Solidere to invest its experience in land development outside Lebanon and more specifically in the Arab world. This will positively reflect on the future financial results of the Company, and accordingly on its share value.
