21 May 2010
BEIRUT: BLOMINVEST recommended investors to buy the shares of real estate giant Solidere and said the real value of each share is $31. This presents a 36 percent upside from Solidere’s closing price of $22.88 per share on May 17, 2010. BLOMINVEST began its coverage report by analyzing the macroeconomic environment in Lebanon and the real estate sector which have a considerable impact on Solidere. It estimated that the Lebanese economy registered an 8 percent GDP growth in 2009 driven by political stability and growing capital inflows from investors. Real estate demand in Lebanon remains strong and emanates from end-users with real housing needs, the report added, highlighting that speculation is limited due to regulations set by monetary authorities to immunize the sector against the global meltdown. The study then discussed Solidere’s business model and showed that almost 90 percent of its revenues are generated through land and real estate sales. – The Daily Star
Copyright The Daily Star 2010.
