THE CHRONICLE 13 While the develop- 10 Hospitality ventures 06 In preparation for 02 Focusing on real 98 All infrastructure 94 Comprehensive ment strategy fo- come to complement the development estate develop- works in the Tradi- urban planning cuses on revenue- and support real of the Waterfront ments that attract tional City Center stresses the topog- generating and added- estate development District – the reclaimed tenants and residents to are complete including raphy of Beirut city center value ventures to com- and enhance property expansion of the tradi- the city center, and fol- the expansion of the and ensures a connection plete the Traditional City value. Hotels, cafes, tional city center – Beirut lowing the positive Ring Road and the cre- between the project and Center, the future devel- and restaurants blossom is promoted as an inter- response to Saifi Village, ation of primary east– its surrounding areas, opment frontier is the alongside office and res- national corporate busi- the impetus to invest in west and north–south accommodating a broad, Waterfront District, with idential neighborhoods, ness center. Further other residential devel- avenues, which organize sustainable, flexible gateway projects set to promoting the city cen- detailed urban and traffic opments increases. This accessibility and con- land-use mix. bridge the transition from ter as a welcoming and studies are carried out, trend also underlines the serve air and view corri- historic to new. friendly, mixed-use space. resulting in amendments importance of full-time dors. 91 Beirut’s postwar to the Master Plan. property maintenance urban recovery is to 12 After Saifi, Wadi 09 Beirut Souks, a flag- and operations services, 97 Restoration is car- be directed through Abou Jamil is taking ship retail project, 05 The seafront Beirut which begin to be offered ried out based on concerted private sector shape as a new opens its doors. Marina is fully oper- to third-party developers. clear urban design, investment into a care- calm, urban, residential This signature shopping, ational, berthing a technical guidelines, and fully constructed institu- neighborhood, while the hospitality, entertain- large number of vessels 01 As businesses, architectural briefs, pre- tional framework, construction of several ment, and cultural meet- on annual and seasonal commercial outlets, serving facades and regulated by government high-rise and large-scale ing point boosts the bases. The planning and and landscaped adapting interiors to the decree. It is set to become developments are economic vitality and construction of several open spaces multiply, needs of contemporary one of the largest inner- launched in the Hotel social vibrancy of the city real estate projects rush a number of vacant lots life and business. Mean- city and waterfront District, Serail Corridor, center. The expansive site forward, especially in provide temporary park- while, following a fast- renewal projects in the and Saifi, all evolving to is a prime example of Wadi Abou Jamil, the ing spaces to accommo- track approach, the first world. complete the Traditional how layers of the city can Hotel District, and the date the mobility of the major new development City Center cityscape. be incorporated into a Serail Corridor. growing number of ten- reaches completion. contemporary design. ants and visitors, in 11 Zaitunay Bay inau- 04 An international anticiplation of the 96 Beirut city center gurates its quayside 08 With the Conserva- urban design com- completion of under- becomes a large restaurant strip and tion Area’s urban petition solicits new ground parking facilities archeological site, welcomes more than fabric almost com- visions for Martyrs’ Square prescribed in the city cen- with excavations uncov- 3,000 visitors per day in plete and the remaining and its surroundings. ter’s Master Plan. ering major discoveries the first six months. At parts of the Traditional The objective is to open dating back to several the other end of town, City Center more than the axis toward the sea 00 With archeological past civilizations. These the newly landscaped halfway developed, a cul- with respect to the urban documentation and excavations are carried Uruguay Street vitalizes tural strategy is imple- grid and reposition the evaluation in full out following a UNESCO nightlife activity in the mented to promote square as a national swing, and following protocol specifically Conservation Area, where culture, arts, and heritage meeting point. extensive findings related devised for the area in selected buildings are il- as tremendous resources to the Cardo Maximus, a coordination with a luminated in the for the local and interna- 03 In establishing large site between several number of agencies and nightscape through an tional communities. the city center as a places of worship is dedi- teams of experts from image projection system. culture and leisure cated to be a landscaped several different countries. 07 With the completion destination, a strategic public space as the of land reclamation approach is taken to Hadiqat As-Samah (Gar- 95 Informed by natu- and the visible integrate archeological den of Forgiveness). ral boundaries and demarcation of the new finds within the urban landforms, street Waterfront District, along fabric. Meanwhile, a 99 The city center is patterns, visual corri- with a continuous rise in Quartier des Arts evolves pulsing with life. dors, past neighborhood developers’ and investors’ against the backdrop Landmark buildings structures, and preserved interest in real estate of reconstructed and are being restored and fabrics, the city center is development, requests restored traditional cafes and restaurants are envisioned as a cluster of come in to emulate the buildings in Saifi Village. multiplying. Businesses sectors, each with its own success of Beirut city and institutions relocating detailed master plan. center’s regeneration to the area are drawn by enterprise in other parts the amenities and serv- of the world. ices such as the state-of- the-art communication network, security, and maintenance. Solidere Annual Report 2012: an account of facts and events in the reconstruction 12 and development of beirut city center An account of facts and events in the reconstruction and development of Beirut city center The Chronicle presents a linear sequence of facts and events spanning eighteen years of reconstruction and development in Beirut city center. Like a timeline, it moves chronologi- cally, without analysis or interpretation. Through the unique method of the chronicle, historiography extends through generations. Nasser Chammaa Dear Shareholders, a word from the chairman The Lebanese economy has endured the devastating consequences of geopolitical upheaval and domestic tension. The uncertainty, com- pounded by ongoing regional turmoil, has exacted a marked and heavy toll on the real estate, tourism, and hospitality sectors. Our Company was not spared, and the number of transacted sale deals in 2012 was drastically low as a result of the growing fallout. The downturn in economic activity at the national level with its pronounced effects on the commercial and hospitality sectors has afflicted the Company’s related businesses, too. Net operating rev- enues dropped sharply by 68 percent, and net income fell 90 percent year over year. Still, Solidere’s fundamentals remain strong: our valuable assets include a land bank estimated at around US$8 billion, a real estate portfolio valued at US$1.3 billion, and a balance in cash and receiv- ables of about US$717 million. We reevaluated and adapted our strategies to ensure the sustainabil- ity of resources. As we weather this tumultuous climate, we have streamlined operations and continue to decrease overhead expenses. Real estate activity proceeds, though at a much reduced pace. Certain real estate development projects have been postponed while the progress of others has slowed. These shifts will ensure cautious application of Company resources, and they will enable Solidere to maintain the track record of superior quality that the brand represents. We will inaugurate the Souks’ Cinema and Entertainment Complex by end 2013 and will complete the Souks’ Department Store in 2015. Both projects generate revenue and will strengthen the vibrancy and value of the area, and more broadly of Beirut city center. In addition, other projects such as the Serviced Apartments and Wellness Center, due for delivery by end 2016, will increase the critical mass of the Souks area. Land on the Waterfront District is ready for construction. The Eastern Marina and 80,000 sq m waterfront city park, now scheduled for a 03 later delivery date, will complement the other real estate projects in — the area and serve as additional magnets. ! ! ! ! 02 Further afield, Solidere International, of which Solidere owns 39 percent, remains financially solid with high liquidity and zero debt. Solidere International pursues the relentless effort to increase business in the region through investments in exclusive and high-value land and real estate development projects with the potential to deliver attractive return on investment. Moving forward, the objective is to capitalize decisively on market trends in the region, primarily in Saudi Arabia and the United Arab Emirates. In 2012, Solidere International distributed a dividend of US$1.50 per share from 2011 profits. We trust that Solidere International’s progress will further catalyze potential value and revenue growth for Solidere and