Property Sharks Circle Ravaged Beirut Homes

Workers remove the rubble beneath a partially-destroyed traditional Lebanese building in the Gemmayzeh neighborhood of the capital Beirut, in the aftermath of the devastating port blast, on August 26, 2020. (Photo by JOSEPH EID / AFP)
Workers remove the rubble beneath a partially-destroyed traditional Lebanese building in the Gemmayzeh neighborhood of the capital Beirut, in the aftermath of the devastating port blast, on August 26, 2020. (Photo by JOSEPH EID / AFP)
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Property Sharks Circle Ravaged Beirut Homes

Workers remove the rubble beneath a partially-destroyed traditional Lebanese building in the Gemmayzeh neighborhood of the capital Beirut, in the aftermath of the devastating port blast, on August 26, 2020. (Photo by JOSEPH EID / AFP)
Workers remove the rubble beneath a partially-destroyed traditional Lebanese building in the Gemmayzeh neighborhood of the capital Beirut, in the aftermath of the devastating port blast, on August 26, 2020. (Photo by JOSEPH EID / AFP)

Ever since a monster blast ravaged the arches and high ceiling of his family home in Lebanon's capital, Bassam Bassila says a real estate developer has been hounding him to sell.

"The owner of a tower block nearby is trying to pressure me into selling him my home so he can raze it to the ground" and "build a tall tower" instead, the 68-year-old said in Beirut's Monot neighborhood.

A massive explosion at the Beirut port on August 4 that many blame on official negligence killed more than 180 people, wounded thousands and laid waste to some of the capital's most picturesque streets.

With survivors still picking through the rubble, property sharks are moving in to take advantage of distraught homeowners, sparking outrage over yet another disaster in the making, this time targeting the country's heritage.

Standing inside his living room turned balcony after the wall separating them was blown off, Bassila said the developer had first approached him some time before the blast, offering to buy his apartment after acquiring the ground floor of the same building.

"Eventually you will leave," the developer threatened at the time.

And now he is back, ramping up pressure on Bassila to sell the home he inherited from his grandparents by refusing to prop up the ceiling of the flat below -- meaning Bassila's apartment could collapse.

A former photographer now eking out a living as a taxi driver, Bassila says he cannot afford to restore his family home without financial aid. But he is also determined not to give it up.

"I was born in this house and my father was before me... I can't live anywhere else."

Of 576 heritage buildings surveyed in the wake of the explosion, including 331 in the port's immediate vicinity, the culture ministry says 86 were severely damaged.

Of those, 44 risk complete collapse, while a further 41 could partially fall down.

In the days after the explosion, Bishara Ghulam, the mayor of the Rmeil district near the port, said he received an unexpected visitor among those flocking to his office to report damage to their homes.

"A man turned up who said he was a real estate broker. He said he wanted to buy houses damaged in the blast, and would pay whatever the owners wanted," Ghulam said.

"I told him we weren't selling."

In the capital, banners have appeared reading "Beirut is not for sale".

Naji Raji, the founder of the Save Beirut Heritage initiative, said: "We've heard from people who have received offers from investors linked to certain politicians."

These developers were bent on profit and coveted central Beirut real estate as it was a "prime touristic area" but would likely change its appearance with no regard for heritage, he said.

In the devastated Gemmayzeh neighborhood, architect Rita Saade surveyed the damage sustained by the home that once belonged to her great-grandparents.

Between the mint green walls of a room held up by arched pillars, she pointed to where the floor had partially caved in. Wooden slats from broken window shutters and shattered drinking glasses lay in a pile nearby.

"This is heritage and it needs to be restored," said the 23-year-old Saade. But "we can't afford to restore it on our own".

Audrey Azoulay, the head of the UN's culture and education body UNESCO, Thursday said the agency hoped to raise "considerable" funding to help with reconstruction.



Some European Firms Retreat from Israel-Linked Finance amid War Pressure

 An Israeli national flag flies over a city highway during rush hour, amid the ongoing conflict in Gaza between Israel and Hamas, in Tel Aviv, Israel, November 4, 2024. (Reuters)
An Israeli national flag flies over a city highway during rush hour, amid the ongoing conflict in Gaza between Israel and Hamas, in Tel Aviv, Israel, November 4, 2024. (Reuters)
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Some European Firms Retreat from Israel-Linked Finance amid War Pressure

 An Israeli national flag flies over a city highway during rush hour, amid the ongoing conflict in Gaza between Israel and Hamas, in Tel Aviv, Israel, November 4, 2024. (Reuters)
An Israeli national flag flies over a city highway during rush hour, amid the ongoing conflict in Gaza between Israel and Hamas, in Tel Aviv, Israel, November 4, 2024. (Reuters)

Several of Europe's biggest financial firms have cut back their links to Israeli companies or those with ties to the country, a Reuters analysis of filings shows, as pressure mounts from activists and governments to end the war in Gaza.

While banks and insurers are often vocal about their environmental and governance aims, they are less forthcoming about disclosing their potential exposure to war.

UniCredit put Israel on a "forbidden" list as the conflict escalated in October last year, said a source familiar with the matter, confirming a study by Dutch NGO PAX.

While in line with the Italian bank's defense-sector policy of not directly financing arms exports to any country involved in conflict, it goes beyond Italy's guidelines on arms exports to Israel.

UniCredit declined to comment on its move and the Israeli finance ministry also declined to comment.

Meanwhile, Norwegian asset manager Storebrand and French insurer AXA have sold shares of some Israeli firms, including banks.

Although corporate filings offer only a glimpse into such exposures, they show companies have been readjusting.

"We don't know whether this represents the beginning of a shift in the industry, one that recognizes the power banks have in choosing where to allocate capital, and where not," said Martin Rohner, executive director at the Global Alliance for Banking on Values, which focuses on sustainable financing.

"Investing in the production and trade of weapons is fundamentally opposed to the principles of sustainable development," Rohner added.

Israeli Finance Minister Bezalel Smotrich told a press briefing last week that although there are challenges to Israel's economy, firms are still raising money. "I sit with foreign investors and they believe in our economy," he said.

Reuters has reported that Israel's investor base has narrowed since it entered Gaza last year in response to attacks by Hamas, and it is feeling the effects of rising borrowing costs.

The potential wider effects can be seen in the approach taken by Storebrand, which a filing showed divested a holding worth about $24 million in Palantir, citing the risk of violations of international humanitarian law and human rights.

US group Palantir, which provides technology to Israel's military, did not respond to a request for comment.

Storebrand's annual investment review said that, as of the end of 2023, it had excluded 24 firms, including Israeli companies, across its portfolios in relation to the occupation of Palestinian territories.

The International Court of Justice, the United Nations' highest court, ruled in January of plausible risk of irreparable harm to Palestinian rights to be protected from genocide.

The same court said in July that Israel's occupation of Palestinian territories including the settlements is illegal.

Israel has rejected the rulings, which combined with growing pressure from activists and governments, are nevertheless having an impact on investment decisions.

AXA, one of Europe's largest insurers, British bank Barclays and German insurer Allianz have increasingly been targeted by campaigners.

"Increasing demand for greater transparency and scrutiny can only mean that financial institutions will intensify and broaden their self-assessment of their commercial associations with arms-related businesses or states," said David Kinley, professor and chair of human rights law at the Sydney law school.

The Ireland Strategic Investment Fund (ISIF) has exited six Israeli companies, selling holdings which amounted to about 3 million euros ($3.26 million), including some of Israel's largest banks, a spokesperson told Reuters.

Earlier this year, the 15-billion-euro Irish fund said that the risk profile of such investments were no longer within its investment parameters.

And Norway's $1.8 trillion wealth fund, the world's biggest, may divest shares of companies that aid Israel's operations in the occupied Palestinian territories which violate its ethics standards for businesses.

WAR EXPOSURE

Investments in Israeli banks are also under scrutiny.

The UN included them in 2020 in a list of companies with ties to settlements in the occupied Palestinian territories as part of its mission to review the implications on Palestinian rights.

A study by research firm Profundo, commissioned by corporate watchdog Ekō, shows that AXA sold almost all of its holdings in Israeli banks stocks earlier this year, retaining only a marginal stake in Bank Leumi.

Reuters verified the data with LSEG. A representative for Bank Leumi did not respond to a request for comment.

A spokesperson for AXA declined to comment on whether AXA had cut its holdings, adding that it is not invested in the banks targeted by activists. The UN list is among the criteria AXA takes into account for investment decisions, they added.

'A CLEAR LINE'

Foreign direct investment into Israel fell by 29% in 2023 to its lowest since 2016, UN Trade and Development data shows.

While UNCTAD 2024 figures are not available, credit ratings agencies have flagged the war's unpredictable impact on investment in Israel as a concern.

Although the US remains Israel's biggest military and financial backer, Spain, Ireland and Norway have recognized a Palestinian state, French President Emmanuel Macron has called for an arms export halt and Britain has suspended some licenses.

When it comes to international politics, "it should be down to the governments to take a clear line," said Richard Portes, professor of economics at London Business School, adding: "To put the burden on the private firms, where does this end?"

In an example of how activists are targeting companies directly, Barclays came under pressure from a campaign in Britain, prompting it to withdraw sponsorship from summer music festivals, while the Financial Times reported in August that it considered pulling out of an Israeli government bond sale.

Barclays said in a statement that it remained "fully committed" to its role as a primary dealer and that such activities fluctuated each quarter. The bank fell out of the top five dealers of Israeli bonds in the second and third quarters, after ranking third in 2023.