Mega deal in parking sector: PARK IN acquires half of Schneider Hospital parking

Shikun & Binui Group and Sphera's PARK IN, the private equity arm of Sphera, Israel's leading hedge fund company, announced the signing of an agreement under which Sphera will purchase 50% of the Schneider Children's Hospital parking partnership in Petah Tikva from Shikun & Binui.

The parking lot, for the benefit of the hospital's staff and visitors, was built in a DBOT (Design-Build-Operate-Transfer) format for a period of 25 years by Solel Boneh, part of the Shikun & Binui Group. The massive parking lot includes 1,555 parking spaces across six underground floors. Additionally, it includes a commercial floor spanning 700 square meters and a garden area of approximately 8,000 square meters with walking paths, playgrounds, and extensive landscaping for the public's benefit. The project provides direct access for ambulances and emergency vehicles, doctors, staff, and patients to the hospital building. The project's construction took about 30 months and has recently begun operations.

The deal was executed based on an asset value of NIS 182 million for the parking lot and includes a consideration of NIS 31 million for equity and NIS 60 million representing 50% of the partnership's debt to banks. Schneider is Israel's leading children's hospital, with around 250 hospital beds and approximately 30 departments and institutes. The deal is subject to approval by Clalit Health Services and the financing body.

Shikun & Binui is undertaking several advanced projects in this format across various fields. These projects include the construction, operation, and transfer of essential infrastructure to the state after a defined period. Notable projects include the operation of Highway 6 (Trans-Israel Highway), the Carmel Tunnels, the Police Training Center in Beit Shemesh, the Intelligence Campus, student dormitories, government complexes, and more. These projects demonstrate Shikun & Binui's ability to combine advanced engineering knowledge and complex project management with efficient and effective long-term operations.

Sphera's PARK-IN fund, established at the end of 2021, focuses on acquiring parking lots in high-demand areas amid growing parking shortages in major cities. The fund has raised NIS 170 million from institutional bodies, family offices, and additional qualified investors and is expected to acquire assets worth approximately NIS 350 million.

The professional team that accompanied the deal includes attorneys Yiftach Farber and Maya Dvir from the Gornitzky law firm, who represented Sphera, and attorneys Ron Vered and Ezra Barus from the Yehuda Raveh law firm, who represented Shikun & Binui. Sphera's financial advisor was Ram Levy from Variance Company, and Sphera's accounting advisor was Shay Bezek from EY.