Solidere expects better sales
Some projects put on hold
Solidere said it entered serious land sale negotiations. The company said it expected to conclude a number of deals before year’s end. A report by FFA Private Bank said Solidere’s revenues from land sales are expected to grow from $50 million in 2012 to $117 million in 2013, raising total net profit to $52 million, up from $18 million. More than 80 percent of Solidere’s revenues come from land sales.
The company is adopting a cautious attitude. It put three planned developments on hold but is proceeding with another two. The first is a mixed use development comprising furnished apartments, retail stores, a spa, and a wellness center. The second project is the completion of the north souks.
Solidere is also currently finalizing a 4,000 square meter cinema theater complex that will be delivered this year.
The FFA report kept expectations high for Solidere shares: “We maintain our target price on Solidere shares at $17 with an overweight recommendation; however, we remain cautious in the short term in light of weak operating conditions, against an uncertain economic and political backdrop.” The current prices of Solidere shares are around $11.
Reported by Yassmine Alieh
Date Posted: Sep 16, 2013