Construction to start on company's landmark "Souks of Beirut" project

Dubai, December 9, 2004:  Solidere's "Beirut City Centre" project emerged a star attraction at the recently concluded Cityscape 2004. Hundreds of visitors thronged the Solidere pavilion to view the landmark development, which marks a multi-billion dollar drive to rebuild downtown Beirut into a vibrant cultural, tourist, leisure and shopping destination.

The company also announced the start of construction for its flagship "Souks of Beirut" project, a 100,000 square meter shopping cum leisure complex which will revive the city's traditional bazaars, which were largely destroyed by the war. Details on the project will be unveiled soon.

Mounir Douidy, General Manager, Solidere, said: "We are delighted with the tremendous response to our Beirut City Centre project which has far surpassed our expectations and which has confirmed the growing interest from Gulf investors in investing in the Beirut City Centre. The GCC is a key focus area for us and Cityscape provided us with the ideal opportunity to extend our unique real estate offer to our regional investors."

A mixed-use development, Beirut City Center, covers over 191 hectares of prime land, of which one third is reclaimed from the sea. As part of the project, Solidere is developing 4.69 millions m2 of built-up-space featuring 40% residential, 50% commercial and offices and 10% hotels, cultural and leisure services.

Commenting upon the investment trends in the Lebanese real estate market, Douaidy said that since 2002, Lebanon has become very attractive to leading regional Arab-based, Gulf-based institutional investors or investment groups who are looking for real estate investments in Lebanon that either yield up to 10 % from rents or that are expected to net returns in the double digits. At the same time, individual Arab investors who used to previously spend their holidays in Europe and the US are now buying property in Lebanon.

This increase in Arab demand, according to Douaidy, can be attributed to the sharp increase in tourism, which has witnessed a jump from 1 million visitors in 2003 to 1.5 million in 2004, the quality of real estate products offered in the Solidere area, and to the appealing residential, commercial and leisure environment being created in the Beirut City Centre. In a bid to encourage and enhance investment in Land for Development, Solidere has launched recently a new program to finance the sale of land granting the buyer  facilities and discounts of up to 20% of the price of the land.

"With our reconstruction and development of the Beirut City Centre, Solidere is strategically positioned to take advantage of this boom as we offer a diverse spread of investment opportunities to regional and global investors," continued Douaidy.

These include purchase of land for development or buying a range of properties within the city centre project spanning hotels, offices, other commercial space and residences, for use or rental purposes. Investors could also establish or buy into real estate funds investing in properties with an income stream and appreciating property values.

Solidere recorded a 114 % increase in profits, up to $ 12.5 million, for the first half of 2004, compared to the same period in 2003.  "Today our project has helped shape the Lebanese real estate sector, boost tourism to pre-war levels and draw world-renowned architects and designers to create a world class urban development. Our success at Cityscape has already established the popularity of our offering among the GCC and global investors, and we look forward towards sustaining this high level of investor interest in our upcoming offerings, " concluded Douaidy.

-Ends-

Note to editors:
About Solidere
The Lebanese company for the Development and Reconstruction of the Beirut City Centre, Solidere, is a joint stock Corporation incorporated in May of 1994 through an association of former property rights holders in the Beirut City Centre and cash investors. The Company's capital is $1.65 billion, with shareholders numbering about 35,000. Its shares A and B, are traded in the Beirut Stock Exchange. The company is also listed on the London Stock Exchange where Global Deposit Receipts (GDRs) are traded.

For further details, contact:
Randa Armanazi
Solidere (The Lebanese Company for the Development and Reconstruction of Beirut Central District, s.a.l.)
Tel: (01) 980650-980660
Fax: (01) 980661-980662
e-mail: solidere@solidere.com.lb

© Press Release 2004