Solidere s.a.l. is a Lebanese joint-stock company in charge of planning and redeveloping Beirut Central District following the conclusion, in 1990, of the devastating Lebanese Civil War. By agreement with the government, Solidere enjoys special powers of eminent domain as well as a limited regulatory authority codified in law, making the company a unique form of public-private partnership.
Solidere was founded on 5 May 1994 under the authority of the Council of Development and Reconstruction and following the vision of then-Prime Minister Rafik Hariri. Solidere was incorporated as a privately owned company listed on the stock exchange. The name stands for Société Libanaise pour le Développement et la Reconstruction du Centre-ville de Beyrouth, French for "The Lebanese Company for the Development and Reconstruction of Beirut Central District".
|Founder||Council of Development and Reconstruction (CDR)|
|Beirut Central District|
|Nasser Chammaa (Chairman)|
Solidere is widely credited as the most important force behind Beirut's reemergence, in recent years, as a bustling urban destination with a chance to earn back its prewar title of "Paris of the Middle East". Solidere's main functions are the supervision of the government-authorized reconstruction plan, financing and developing the infrastructure, new construction and rehabilitation of war-torn structures, urban landscaping and the management of property. Solidere has worked to attract global retailers such as Virgin Megastores to Beirut Central District. Its most significant single project to date has been Beirut Souks, a 100,000 m2 retail center that was scheduled to open by 2008; it opened in 2009. Other projects that are central to the company's cultural strategy for the center are the Beirut Exhibition Center, add Saifi Village - Quartier des Arts, a residential neighbourhood with a high density of design shops and art galleries.
Solidere was founded after the government chose the framework of the public-private Real Estate Holding Company (REHCO) as the most viable option to reconstruct the central district, which was severely damaged and demolished, and emptied of its pre-war economic and demographic activity. Some research points out that the REHCO solution was the only viable option. The practical nonexistence of a functional government after the war, and the near-impossibility to align all stakeholders, including property owners, into one unified and feasible vision, called for private resources to plan and execute a project of such scale and importance. Hariri's credibility as a business person and the speed and efficiency of submitting plans and investments models all played in favor of the REHCO model. It can be argued that without this large-scale intervention, the centre would have at best re-developed in a chaotic and uncoordinated manner, the way that other areas of the capital are experiencing.
The first axis of controversy relates to the mechanisms and masterplans of the reconstruction. Several opposition groups emerged to challenge the REHCO model and propose alternatives to it. Among those was a group of academics and urban planners who fueled a public debate about the goals and methods of reconstruction, especially the large-scale demolition and redesign, as outlined by an initial plan submitted by Dar Al Handassah. Other critical views saw the plan as disconnecting the centre from the rest of the city's fabric and transforming it into an "island of modernity". The contested plan was consequently changed, with the participation of some of the architects from the opposition groups to take into account some of the key points raised.
A modified plan emerged and was evaluated by the Engineer's Union, but it never approved by the public before being sent to government.
The second axis of controversy relates to the mechanism of property expropriation, deemed forced and enabled by Capital's pressure on the government and Hariri's influence as prime minister and the valuation of property, deemed inappropriately low. By law, the company had six months to secure the necessary cash subscriptions to balance out the land value. Were it not for that conservative valuation of land, the whole project would have collapsed when the government had no alternatives.
Its shares are listed on the Beirut Stock Exchange, and its Global Depository Receipts trade on the London Stock Exchange. Its share price on the Beirut exchange has risen sharply in recent years, from about US$5 in early 2004 to a high of $39 in September 2008. Between 1995 and 2015, Solidere has approved more than $1B in dividends to its shareholders.
Solidere's 36,000 shareholders are mostly Lebanese , in addition to Arab nationals, banks, and Arab or international funds. There are two categories of shares: A held by previous property owners and B by new investors. Rafik Hariri's share in the company has been a controversial subject in the Lebanese political spectrum. Some rumors say that he owned a majority stake in Solidere before his assassination in 2005, and the Hariri family continues to be a principal shareholder today. However, the Hariri family rejected those rumors, saying that he owned only 6% of the company's shares. Furthermore, Solidere prohibits any shareholder from acquiring more than 10% of the company's capital, either directly or indirectly.