music is in the air

April - June 2006
music is in the air
business
&
financial news
Beirut Broadband
Chairman’s message
Annual general meeting
Board meeting
Beirut city center continues to be a most sought-after
place by visitors and residents as well as investors.
Held June 12, 2006, Solidere’s
annual general meeting, presided
by chairman Nasser Chammaa
and attended by the board of
directors, took the following
resolutions:
Following the general meeting,
the board of directors met on the
same day and took the following
resolutions:
For the new sector plan for the Martyrs’ Square axis, we
used the best features of the international competition
winning scheme, with contributions from our consultants
and in-house team. Official decrees ratified Master Plan
amendments reflecting the new sector plans for the
Martyrs’ Square axis, Ghalghoul, Souks, hotel and
waterfront districts.
Financially, 2005 was a boom year, with a record profit
of US$108.5 million, US$125.6 million before income tax.
This 100% increase on 2004 profits is mainly due to
record land sales to Lebanese and Arab investors.
Recognized sales reached US$253 million. In the first
quarter of 2006, US$1.1 billion in new sales were signed,
equal to cumulative recognized sales since inception.
Solidere is selling more land commanding higher prices.
Its portfolio of revenue generating assets is increasing
at a healthy pace. New lines, added to its core activities,
are expected to increase the Company’s bottom line.
Coupled with low overheads, a low cost of land now
mostly spent, and debt retirement, the results are due to
boost cash holdings dramatically. Increased liquidity will
be used for dividend distribution and share buybacks,
with a positive impact on share values; as well as for
identifying strategic opportunities for new development.
Your Company is truly at a turning point on its solid
course towards meeting all its targets.
(Extracts from Annual Report 2005)
2
Gave the chairman and members
of the board the authorizations
stipulated in articles 158 and 159
of the Lebanese commercial code.
Cleared the chairman and board
members of any liability for
matters relating to the Company
management in 2005.
Re-elected 11 board members for
three years, ending at the date of
the general meeting to be held to
approve the financial statements
as at December 31, 2008; the 12th
member, representing the State
and municipality, being appointed
by decree.
As per clause 30 of the Company
Articles of Association, appointed
Ernst & Young and Deloitte &
Touche as auditors for three years
ending at the date of the general
meeting to be held to approve the
financial statements as at
December 31, 2008.
Approved Mr. Chammaa’s
recommendation to appoint
Mr. Mounir Douaidy as general
manager for the duration of the
board mandate, under the
chairman’s supervision and
responsibility.
Volume
Chairman Chammaa made a
presentation on Solidere results
and prospects at the annual
general meeting.
$24.0
800,000
$23.0
600,000
$22.0
400,000
$21.0
200,000
$20.0
Business conferences
3 Apr 06
Beirut city center is receiving
international acclaim as a hub
of exciting events and diverse
activities. Mounib Hammoud,
deputy general manager sales
and business development, spoke
of Solidere’s strategies that led
to this success. Arab Economic
Forum, held in Muscat May 12.
General manager Mounir Douaidy
spoke on Solidere at the Business
Opportunities conference in
Lebanon Year IV, June 22.
Mr. Douaidy also spoke on the
Solidere case at the Fleming
Gulf conference on Real Estate
Investments in the Middle East
Forum, held in Beirut June 26.
Solidere and Louis Vuitton
Malletier Paris s.a.l. have
signed a leasing offer for a
store in the Beirut Souks.
This unique store, in an
upscale location along
Allenby street, will be the
first Louis Vuitton outlet
in Lebanon that is not in
a mall. The brand will be
represented by the holding
company, not by an agent
as is usually the case.
Share A - Daily Closing Prices
Investor presentations
Mr. Douaidy made a series of
presentations to a large number
of international investment funds,
meeting in Los Angeles and in
London.
Beirut Souks
Solidere has signed a BOT
agreement with France
Telecom’s subsidiary Equant
to deliver these multimedia
services via Solidere’s
operation center.
Share performance during the 2nd quarter
Share Price
Investors’ interest has led to the early purchasing of
sites in the waterfront district, for delivery to investors
on completion of land reclamation. We have taken
measures to expedite works after termination of the
Radian contract in February 2006, and will inform
investors about planned timing of site delivery.
Approved the audited financial
statements for the year 2005;
taking note of accumulated profits
and of the US$108,456,887 net
income for the year, resolved to
transfer 10% of net income to
retained earnings, and distribute
US$99,000,000 in the form of
US$0.60 per share held, as per
shareholders’ register at the
general meeting date, with the
distribution to take effect as of
August 15, 2006.
Elected Messrs. Nasser
Chammaa as chairman; Nabil
Boustany, Maher Beydoun as vicechairmen; Raphael Sabbagha as
secretary-general.
25 Apr 06
17 May 06
8 Jun 06
30 Jun 06
Share B - Daily Closing Prices
Share Price
Beirut Souks are advancing rapidly for delivery in the
second half of 2007 for the South Souks, by end 2008
for the North Souks. Real estate activity is ongoing in
Saifi Village, Wadi Abou Jamil and Zokak El Blatt, around
the Souks and Beirut Marina, and in high-density zones:
hotel district, Martyrs’ Square axis, south and north
edges of the city center. Of a 4.7 million sq m target floor
area for the city center with the new waterfront district,
2.6 million sq m have been the subject of development.
The city center is to become
an internet hot zone. A fiberoptic broadband network
bringing internet access
downtown will give residents
and businesses the option
to subscribe to fast internet
access and browsing, video-ondemand, video-conferencing,
closed-circuit television
services and a data center.
Volume
$24.0
800,000
$23.0
600,000
$22.0
400,000
$21.0
200,000
$20.0
3 Apr 06
25 Apr 06
Share price (US dollars)
Trading volume
17 May 06
8 Jun 06
30 Jun 06
A Memorandum of
Understanding for an
upmarket foodhall on a
3,700-sq m trading floor
area has been signed
between Solidere and
The Sultan Center s.a.l.
Intended to capture the
essence of the old Souks
food markets, selling
gourmet food, groceries
and beverages, it will be
a convenient one-stop
foodhall for Beirutis
working and living in the
city. People from other
areas will also be
attracted by this unique
shopping experience.
Solidere shares held on
to their gains during the
quarter, in spite of the
broad sell-off in regional
markets, as the Company
continued to show strong
earnings potential thanks
to its increased land sales
and increasing revenues
from other operations.
Shareholders welcomed
the announcement by
Solidere of a 10% share
buyback program in the
open market, with a view
to reduce capital and
increase EPS.
Share A traded between
a low of US$21.60 and a
high of US$22.98, closing
the quarter at US$22.03, a
1.10% increase compared
to the previous quarter.
Share B traded between
a low of US$21.73 and a
high of US$22.97, closing
the quarter at US$22.18,
a 2.40% increase over the
previous quarter.
Around 7 million shares
of both classes were
exchanged in the local
market, well below the
previous quarter.
Shares traded in the
Kuwait Stock Exchange
followed the trends in the
local market. The GDRs,
traded in the London
Stock Exchange, closed
the quarter around the
US$21.85 level, slightly
below the previous
quarter closing.
3
newcomers and old timers
Business and services
BBC News - Beirut Bureau
Booz Allen Hamilton
Credit Agricole
EFG Hermes
Lebanon and Gulf Bank
Washington Post Bureau
Retail
Body & Soul
Gianfranco Ferré
Kezako, furniture
Osaka sushi lounge
Oumnia rugs and ethnic items
Porsche Design, the Boutique
Sunflower design accessories
Le Talleyrand restaurant
Vicini boutique
White restaurant & lounge
Opening soon
business and pleasure destination
Scores of visitors have come to the city center,
arriving by air or land, in cruiser ships or in boats
moored in Beirut Marina.
Businessmen seeking investment opportunities,
owners-developers completing their properties,
professionals taking part in conferences and
specialized exhibitions.
Above all, tourists, engaged in sightseeing and
entertainment to suit all tastes, from concerts,
lectures and exhibitions in the artists’ quarter,
to lunch with the family, activities for children,
dinner with friends or coffee and ice cream.
There are so many places to choose from. Some
prefer to sit in gardens, or hunt for fancy designs
in the trendy shops, or browse for bargains in
open-air markets.
Armani Casa furniture
Sky Bar
Tabbah jewelry
clockwise from above left,
Porsche Design, Nadine Mezher,
BEMO, Saudi-Lebanese Bank,
Gianfranco Ferre, Osaka sushi lounge.
4
5
fête de la musique
other performing arts
Homage to Samir Kassir
A piano recital by Zad Moultaka
and dance performance by Yalda
Younes, dedicated to Samir
Kassir, took place in the garden.
A lifelike statue by Louise Derbre
was unveiled, and speeches were
made, June 2.
Evangelical church
An Homage to Mozart,
University of Balamand choir,
April 9.
Other
music
left to right, Michaela Catranis piano
with Ghassan Yammine choir;
St George Maronite choir; Ceux qui
marchent debout; Bassem Rizk.
Classical /
choral music
St George cathedral
St George’s church choir
directed by Antoine Atallah,
Oriental and Western
polyphonic sacred music.
Evangelical church
Ghassan Yammine music
school choir, Michael Haydn’s
Requiem; two pianos, Wassim
Kaissi and Michaela Catranis.
Roman Baths
Bouton Rouge, French jazz;
Ceux Qui Marchent Debout,
French funk group; Libra,
percussion; 36 degrees, rock;
KhatAhmar, rap; DJ Fadi El
Assouad, electro.
Samir Kassir garden
Friends of Samir Kassir band,
jazz; Ziad Ahmadieh and
group, fusion; Yvonne elHachem, jazz soloist; Bassem
Rizk, modern Oriental; Flat
Five, jazz; Zappe, Latin jazz.
Dome
Zad, percussion; Deconstrukt,
drums and bass; Lethal Skillz,
scratch hip hop; DJ 2D2 hip
hop; DJ Gunther & Stamina.
Virgin car park
Linger, rock; Arcane, rock;
Roswell, soft rock; New
Government, soft rock;
Ramez, rap; DJ Elio, trance.
Maarad, Abdel Malek streets
Gabriel Nada, saxophone;
Meen, two electric guitars;
Nasser, Nai, and Fred, guitar.
from top left, Bouton Rouge;
New Government; Lebanese
percussion band.
6
Robert Mouawad museum
Elie Rizkallah with the Oriental
jazz concert, May 11.
Music Hall
Magic Malik Orchestra and
guests, April 13.
Arthur H, May 21.
Camille, June 4.
BIEL
Che Guevara musical comedy,
Baalbeck festival committee,
April 1 – May 28.
Musical fundraising event,
Heartbeats children’s heart
charity, May 5.
DJ Carl Cox, May 6.
Star Academy 3, three-winner
concert, May 20.
Ricky Martin concert,
Beiteddine festival committee,
May 27.
Curtis 50 Cent Jackson and
Haifa Wehbe in concert,
June 10.
Monroe Hotel
Malaje, Albadulake Spanish
group contemporary circus /
flamenco show, Instituto
Cervantes, April 23.
Hake Neswan, women’s talk,
play directed by Lina Khoury,
May 11 – June 30.
Recital by singer/composer
Olga Maria Ramos, May 25.
Sung poetry by Javier Ruibal,
May 26.
anti-clockwise from top,
Homage to S. Kassir,
J. Ruibal and his band,
E. Rizkallah and Oriental band,
O. M. Ramos, Malaje show dance,
Hake Neswan.
7
art exhibitions
left, Cuban art,
above, N. Daher.
Planet Discovery
exhibition hall
Nizar Daher
Artists-in-Residence program,
April 4 -16.
Contemporary Cuban Art
Organized by the Cuban
embassy and inaugurated by
minister of culture Tarek Mitri,
the show groups 20 artists
from Cuba, April 21- May 13.
Lectures and discussions for
art students were also held.
Born in Lebanon
National Heritage Foundation
tribute to 16 world famous
personalities of Lebanese
origin: Maher Attar, Abdel
Rahman El Bacha, Michael
Debakey, Fayrouz, Kmaro,
Carlos Ghosn, Nicolas Hayek,
Ray Irani, Mario Kassar, Casey
Kasem, Amin Maalouf, Elie
Saab, Jacques Saadé, Rony
Seikali, William Sawaya,
Gabriel Yared. May 18-28.
Joan Barbará
Etchings, organized by
Instituto Cervantes, June 30 July 22.
Quartier des Arts
Other galleries
Rochane
Aurore Selwan, March 22 April 4.
Ciné Follies, posters from
classical films from 19501980, May 18-25.
Aida Cherfane
Paintings by Hussein Madi,
April 7-29.
The sky and mountain are so
close, by Stélio Scamanga,
May 12 - June 2.
Pièce Unique
Clay and Fire, AUB students
ceramics presented by Amal
Muraywed, May 10-20.
Paintings by Hrair, May 24 June 24.
The Dome
Waynoun, where are they?
installation art, Nada Sehnaoui
and Tanbak, April 1-15.
Shawki Shamoun
Permanent exhibition.
Epreuve d’Artiste
Martin Giesen paintings,
May 30 - June 24.
Glasnost
A collection of Mohammad
Hassoun’s family productions
in glass, silver and sculptures
in ceramic and bronze from
1900-2005, June.
clockwise from top left,
S. Scamanga, M. Giesen,
H. Madi, Hrair.
Virgin Megastore
Samah, digital photos,
month of April.
Maria Sarkis, May 11.
Magie de Venise à Beyrouth,
photographs by Genia Maalouf,
June 2.
On/Off
Raw Design continuing
exhibition.
Nada Debs
East and West furniture
collection, June.
from left, Born in Lebanon,
Waynoun installation.
V&A
Contemporary art, June 30.
from left, Glasnost,
Nada Debs.
8
9
reading and culture
Souk El Tayeb
Semaine de la lecture,
organized by the ministry of
culture with an exhibition of
books.
La reine des couleurs,
marionette theatre, and
stories for children, organized
by Goethe-Institut, April 29.
children in Souk El Tayeb.
below, Project Lebanon;
The World is Small.
Other events
from top left, J. Beauchard, A. Najjar, J. Medlej, H. Kawsarani, Z. Hemady and N. Schiller; Z. Assaf, H. Dabliz, J. Haddad, A. Wazen, M. Taan, B. Winter.
Lectures,
booksigning, workshops
El Bourj
El ousbouh el akhir, Hala Kawsarani, April 25.
Poetry evening by a group of poets, including Zeinab Assaf, Heba
Dabliz, Abdo Wazen, Joumana Haddad, April 27.
La passion de lire, Alexandre Najjar, May 2.
De l’olive au hammam, Youmna and Joumana Medlej, May 6.
Beyrouth, la ville, Jacques Beauchard, April 13.
Semaine du Petit Prince et de Saint-Exupéry, design workshop
by Yasmine Taan, Lebanese branch of the Society of Children’s
book writers and illustrators, May 13,
Writing workshop by Nisrine Ojeil, May 20.
Angélique book collection by Stéphanie Schneider, illustrated by
Yasmine Taan, animation, May 27.
Instituto Cervantes
Commemorativa del Dia
Internacional del Libro
lecture, April 24.
Don Quijote y el mundo arabe
round table, Nadia Zafer
Chaaban, Mahmoud Ali Makki,
May 16.
El Decano book presentation,
Tomás Alcoverro, Antoine
Khater, Samir Karam, May 18.
The poetic works of Juan VanHalen, discussion, June 13.
Poetic works of Jorge Valdés
Diaz-Vélez, lecture, June 29.
Peruvian writer Mario VargasLlosa, June 23.
Virgin Megastore
Le sayyed de Bagdad ,
Mohammad Taan, June 2.
The Accidental President of
Brazil , Brian Winter, June 20.
28 days that changed Lebanon,
Zina Hemady and Norbert
Schiller, June 23.
Maarad street
La passion du football
booksigning, Hayat Karanouh
and Alexandre Najjar, June 14.
from left, M. Vargas-Llosa, T. Alcoverro, N. Z. Chaaban, M. A. Makki, J. Van Halen.
BIEL
Forward 2006, orientation and
recruitment, April 6-9.
Yalla Nélaab, kermesse held
by Toufoula in aid of children
with cancer, April 29 – May 1.
Fortune-telling festival,
May 26 -June 4.
Project Lebanon, June 6-10.
Art Deco, June 15-20.
Banks, Insurance and Real
Estate 2006, June 27-30
The World is Small
Three modern little Buddhas
sculpted by Ana Corbero are
displayed in a Saifi Village
square from June 21.
Other
Football fans watched the
World Cup on giant TV screens
throughout the city center.
Tine et Zbib puppet show,
Planet Discovery, Friday and
Saturday afternoons.
Spanish language courses at
Instituto Cervantes, including
classes for children, during
the summer months.
10
Discover
the city center
Using Maria Pascalides’
Je découvre en jouant le
centre-ville de Beyrouth,
walks, stories, quizzes and
games were organized for
children by Nisrine Ojeil, El
Bourj bookstore and Beirut
city center, April 22.
Know your city center, paper
rally by the Press Club, May 6.
Biroth - Berytus - Beirut, a
stroll through the ages in
downtown Beirut, organized
for children by the Friends of
the Museum, AUB, May 7.
Robert Mouawad museum,
open daily 9 to 5 pm except
Mondays, late night on
National Heritage day, May 24.
N. Ojeil and M. Pascalides
with children, Biroth-Berytus-Beirut.
11
in and about the city center
Visitors
Official visitors
General secretary Roberto
Laperche and undersecretary
Sergio Beros, Buenos Aires
autonomous government
international relations.
Business
Abdul Aziz Ali Al-Kandari,
chairman, marketing projects,
Abdul Mohsen Ahmad
al-Kandari, director of
administration and Jassem
Mohammed Al-Kandari,
assistant to director, Zakat
House, Kuwait; Stuart Gissing
and Ian Albert, directors,
John Davis, CEO and Eamon
Alashkar, manager, Colliers
International real estate
agents, Dubai; Syed Basar
Shueb, general manager, PAL
Group development company,
Dubai; Mario Moretti Polegato,
president, GEOX shoe
company, Italy; Julian Henco,
managing director and
Siegfried Gansslen, chief
financial officer, Hansgrohe
Axor, Germany; Fabio Gnocchi,
general manager, Etro, Italy;
Eric Lee, director, Bossini
Enterprises Ltd; president Dan
Natchez, Daniel S Natchez
Associates, Boston; Raja
Alameddine, vice-president,
Gordon Falconer, vicepresident and Emile Habib,
managing director, The
National Investor, Abu Dhabi;
Zylfi Husenaj, executive
assistant, Aswaq management
and Services, Abu Dhabi;
investor Mr Houssam, Iraq;
Mark Cavendish, Benetti, Italy;
Anthony Howard, finance
officer, Master Foods
company, Australia; Peter
Higgins, Rare Corporate
Design, UK; Nabil Al-Nakib,
senior resident engineer,
W S Atkins & Partners, Dubai;
UNICEF organization review
director Rosemary McCareery.
12
Delegations
Banque Indo-Suez president
Jean Laurent heading a sevenmember delegation; Dr Claus
Baderschneider, vice
commercial director, Meiser
Gruppe, with representatives of
four construction companies,
Germany; group of consultants,
Projacs international and Abu
Dhabi investment house,
Arquitectonica and Christian
De Portzamparc developments;
18 lawyers, engineers, chiefs of
municipalities, France; group
with Omar El Idrissi, director
Agence Urbaine de Taza,
Morocco; 10 representatives,
Association Européenne
François Mauriac; 15 from
NGO’s, USA; 10 businessmen,
from Brazil; 15 businessmen
from Kurdistan.
Academics / Professionals
Professor Rami Daher,
university of Jordan with 50
architecture students; Amer
Maleh, lighting designer,
New York; John S. Aitchison,
architect and planner, Maunsell
consultancy services, Al Ain,
UAE; four law and business
students, university of Paris;
architecture students, Austria
and Switzerland; six historians
from France.
Media
Sarah MacInnes, regional
director, International Herald
Tribune; Natasha Boswell and
Clinton Cossette, Washington
Post, USA; Irina de Chikoff,
Le Figaro, Paris; Wendel
Stevenson, Sunday Times, UK;
10 journalists from Iraq; two
representatives, Airport France
business magazine; Charlotte
Wiedemann, Germany.
clockwise from left, Banque Indo-Suez
president Jean Laurent with Solidere chairman
Nasser Chammaa, Spanish, Swiss, Brazilian
ambassadors with A.R. Solh.
Beirut and the city center
Giancarlo de Carlo’s projects
in Wadi Abou Jamil were
reviewed in the May issue of
Domus magazine, De Carlo,
Eclectism in Beirut.
Solidere urban development
manager Angus Gavin spoke
on ‘Beirut: Emerging Places’,
at AUB City Debates 2006,
held on the theme Spaces for
the Rich: Citizen / Consumer
Practices in Affluent Beirut.
He examined the emerging
public open and cultural space
in downtown Beirut and the
city's emerging place in the
region. May 11-13.
Mr. Gavin also presented the
recovery and renewal of
Martyrs’ Square at APERAU’s
international urban affairs
conference, Conquérir la ville,
réappropriation urbaine:
acteurs, mécanismes, enjeux.
ALBA, June 1-2.
Beirut City Center is the title
of the book of photographs
by Larry Mc Pherson to be
published by Steidl Verlag and
Solidere in July 2006.
Rana Boustany, of the Solidere
corporate reporting team, won
first prize in the AUB museum
shop competition. Her jewelrykit designs were inspired from
the Bronze age fenestrated
axe and Hellenistic pottery.
Among the architects involved
in Beirut city center, Nabil
Gholam Architecture and
Planning won the international
concept design competition
for the AUB Faculty of
Engineering and Architecture.
The Lebanese Company for the
Development and Reconstruction
of Beirut Central District, s.a.l.
P.O.Box 119493
Beirut 2012 7305, Lebanon
Tel. 01 980650/980660
Fax 01 980661/980662
solidere@solidere.com.lb
www.solidere.com