The devastation wreaked by the 1975-1990 Lebanon war put a heavy burden on the State. Beirut Central District (BCD) was one of the worst hit areas and the prospects of its rehabilitation were initially marred by inadequate resources, absenteeism and entangled property rights. An innovative legal and institutional framework has enabled its reconstruction to proceed without recourse to public funds, through a private development corporation.
Solidere's incorporation was based on legislation formulated for the reconstruction of severely war-damaged areas through the creation of real estate companies, subject to a duly approved master plan. The Company was capitalized with contributions in kind, consisting of rights in the property lots falling within the prewar city center, and of cash subscriptions. Right holders were identified, their contributions in kind appraised and distributed by judicial committees, and they were issued A shares, while subscribers to the initial private offering were issued B shares. They were also allowed to recuperate retained built lots subject to strict restoration conditions. Corresponding shares were relinquished and reverted to Solidere. Against financing and construction of the infrastructure and public domain for the entire BCD on behalf of the State, Solidere was granted ownership of 291,800 sq m of development land in the New Waterfront District.