Clal Insurance Acquires 8% Stake in Shikun Vabinui Real Estate in NIS 400 Million Deal

In a strategic move aimed at reducing its debts, Shikun Vabinui Real Estate, a subsidiary of Shikun Vabinui, has successfully completed a share sale transaction with Clal Insurance.

As part of this deal, Clal Insurance has acquired an 8% stake in Shikun Vabinui Real Estate, valued at approximately NIS 400 million. The transaction marks a significant step for both companies, with Clal Insurance now poised to play a pivotal role in the future growth and development of Shikun and Binui Real Estate.

Shikun and Binui reported robust financial performance for the second quarter of 2023, with revenues totaling two billion and 86 million shekels. This represents a substantial increase of 20.4% compared to the same period last year. The company attributes this impressive revenue growth to a substantial increase in the franchise sector, which contributed hundreds of millions of shekels to its bottom line.

Furthermore, Shikun and Binui announced the receipt of the necessary approvals to finalize the sale of their 21.6% stake in the SH-288 toll road located in Houston, United States. This stake will be sold to their partner in road maintenance, the Spanish company ACS.

Tamir Cohen, CEO of Shikun and Binui, expressed enthusiasm about the partnership with Clal Insurance and Finance Group, stating, "Clal Insurance and Finance Group is a significant strategic partner, capable of helping the company accelerate its development and expansion plans. Shikun and Binui Real Estate owns the most valuable land reserves in Israel and intends to continue expanding its operations."

Barak Bansky, CEO of KNF and head of the investment division at Clal Insurance and Finance, emphasized the significance of this investment, saying, "Increasing the investment in Shikun and Binui Real Estate constitutes another pillar in the strategic cooperation with the Shikun and Binui Group. Clal first invested in the company over a decade ago, an investment which produced a significant return for Clal Insurance and Finance colleagues. This investment aligns with our strategy to enhance Amitim's portfolios with residential real estate in Israel through leading companies in the field. Shikun and Binui Real Estate, with its substantial land reserves for development, is poised to deliver high returns for Amitim Clal in the near future."

This strategic partnership between Shikun Vabinui Real Estate and Clal Insurance marks a significant milestone in the real estate and insurance sectors and is expected to have a positive impact on the growth and development of both companies in the coming years.