Shikun & Binui Ltd.
Line of Business
Construction, Real Estate, Infrastructure, Concessions, Energy and Environment in Israel and the world
Established in 1924
In 1958, Shikun & Binui became one of the first Israeli companies that established activities outside Israel’s borders and today Shikun & Binui is a global group active in about 20 countries in four continents. The Group is involved in mega projects all over the world worth billions of dollars, characterized by high complexity levels while maintaining the highest performance standard. The Group’s activity consists of three central building blocks – (1) world construction activity (including Israel), (2) real estate development in Israel and abroad, and (3) other income generating projects and assets (IGAs). In the construction activity, the Group focuses, through its subsidiaries, in the construction of roads, public buildings, power stations, solar and hydro projects installations, airports, railroad tracks projects and other infrastructures in Israel, Africa and North, Central and South America. The residential real estate development arm of the Group is involved in development and improvement of lands and construction of residential neighborhoods for families in Israel and in five capitals in Central Europe – Prague, Warsaw, Belgrade, Budapest and Bucharest. Another significant field pioneered by Shikun & Binui Group is the establishment of infrastructure projects in cooperation with the private sector (PPP – Public Private Partnership) such as the “Highway 6”, The Carmel Tunnels, Israel’s Police Education Center and the desalination installation at Hedera. Today, the project and income generating assets arm promotes many projects around the world in this field. The Group is involved in development, establishment, finance, ownership and operation of giant ventures with different financing models in the fields of roads, energy, public buildings, water desalination and environment. In addition, Shikun & Binui Group has activities in real estate income generating assets – both in commercial fields in Israel and in Central Europe, and through ADO Group holdings in income generating residential real estate in Berlin. Shikun & Binui Group’s strategic fundamental themes are to become a global group in the full sense of the word, to continue the diversification of the Group’s activities, both from the geographical and the fields of activity points of view and to grow in a responsible and skilled manner for the benefit of the shareholders.
The Group had revenues of NIS 5.4 billion in 2016. Shikun & Binui’s net profit that year was NIS 480 million.
As part of the Arison Group, Shikun & Binui adopted a vision of Sustainability: “To be a leading business group that creates a sustainable advanced living environment in Israel and worldwide, for our own sakes and for future generations”. The Group’s ability to grow and renovate over time is based on two central themes: the first, is the recognition that the Group’s activity affects many people over whole generations. The second is the Group’s ability “to see beyond the horizon” and to adjust to the changing life environment. The sustainability vision helps the Group to continue operating under the light of these central themes. Environmental and social considerations in the Group’s activities are taking into account alongside the economic-business considerations, following the approach that activity in the sustainability field creates real economic value. Special emphasis is given in the planning and execution of each project to maintaining the environment and to minimizing and fixing potential damages in the construction process. The Group adopted advanced sustainable construction standards, involvement in renewal energy projects and water and put emphasis in conducting itself with transparency while cooperating with stakeholders and others. In addition, Shikun & Binui has extensive activities in the field of community relations. Shikun & Binui publishes corporate responsibility reports (in the main languages of the Group’s activities – Hebrew, English and Spanish) that survey the main activities in subjects related to sustainability and environment.
Shikun & Binui’s approach to sustainability has earned recognition from the community involved in the protection of the environment in Israel and the world. In 2013, “Life and Environment”, the umbrella organization of green organizations In Israel, granted Shikun & Binui’s Group the “Green Globus” award. In 2016 and 2017, Shikun & Binui earned the “Maala” rating for corporate responsibility in the “Platinum Plus” ranking, the highest existing ranking. Shikun & Binui was ranked in first place in BDI’s “The Best Companies to Work For” ranking for the construction and real estate sector in 2013-2017.
The Group’s Activity Arms
Shikun & Binui Solel Boneh Infrastructures is the Group’s contracting-executing arm in Israel. The company was founded in the 1920’s under the name “The Ministry for Public Work”. The company carries out complex civil engineering projects and is a partner in the establishment of BOT and PPP projects. Solel Boneh specializes in engineering and construction, roads and infrastructure, bridges and interchanges, ports and chimneys, underground work, tunneling and smokestacks, constructing factories, logistics fields and geotechnical work. Solel Boneh operates as a contractor for public work. The company operates factories for the manufacture of concrete, asphalt, and pre-fabricated building elements.
Shikun & Binui America (SBA) – In 2016, the Group’s board adopted a strategic decision to focus the contracting activity with geographic emphasis. Following this decision, a new contracting unit was established that will focus on the American continent and will become the Group’s executing arm In North and Latin America. The unit’s activity will be performed both, independently and with the cooperation of the Group’s infrastructure development units – the concessions unit and energy company.
SBI Shikun & Binui Infra-Structure Ltd. is the Group’s international infrastructure arm for projects in Africa and a list of projects in the fields of civil engineering, development and construction. The company was founded in 1958 and operates as an executing contractor, participates in leading projects and executes civil engineer work, including paving roads and building bridges, construction work, water and sewage plants, telecommunications, hydraulic and thermal power stations, quarries and mixture processing factories, etc. SBI headquarters are located in Switzerland. The company’s main operations are located in West Africa (Nigeria, Ivory Coast, Ghana, Togo and Benin), East Africa (Uganda, Kenya Mozambique and Tanzania), Central Europe (Romania) and Asia (Azerbaijan).
Shikun & Binui Real Estate is the Group’s real estate development arm in Israel and the leading real estate company in the country. The company was founded in 1933, (under the name “Shikun Ovdim”), and has since constructed nearly 200,000 residential units in Israel. Its activities include residential projects’ development intended for sale, including purchase, planning, improvement, development and sale of lands owned by the Group. In addition, the company’s activities includes development of income generating real estate for offices, industrial buildings and commercial centers such as malls, intended to generate income from rent and improvement up to the time when they are sold.
Shikun & Binui Real Estate Development (RED) is the international real estate development arm of Shikun & Binui Group. The company, founded in 2001, operates from its head office in Amsterdam mainly in the capitals of Poland, the Czech Republic, Serbia, Romania and Hungary. The company specializes in the development of residential and non-residential projects intended for sale and/or rent, as well as holding income-generating assets intended to produce revenue from rent and/or improvement through changing their purpose and/or to develop other projects instead.
Shikun & Binui Concessions is the Group’s division that specializes in the development, financing and execution of PPP (Public Private Partnership) projects in Israel and worldwide in the fields of transportation, desalination, water, energy and social infrastructure. The company has been active since 1995.
Shikun & Binui Renewable Energy is the Group’s energy arm. Since it was founded in 1965, it has been involved in development, planning, construction and operation of electricity generating facilities in Israel and abroad. Installations that are based on natural gas and renewable energy, including thermo-solar energy and photovoltaic solar energy. Shikun & Binui Renewable Energy specializes in both independent development and cooperation with the public sector (in PPP type projects).
ADO deals mainly with the purchase, holding, managing and renting of residential dwellings in Berlin, Germany. The company has a portfolio of about 20,000 residences and commercial properties in Berlin and is a leading player in income generating residential real estate in Berlin. ADO is experiencing growth momentum, in 2015, ADO Properties, its subsidiary, completed an IPO (Initial Public Offer) in the Frankfurt exchange. In 2016, ADO Properties raised approximately EUR 300 Million in capital and in 2017, it raised EUR 400 Million in bonds. The company uses these financial resources to expand its activities and continue its growth.
(Shikun & Binui Infrastructure Ltd.)
Line of Business
Construction, Infrastructure Work, and Development of Civil Engineering Ventures in Israel and Abroad
Established in 1958
SBI (Shikun & Binui Infrastructure Ltd.) is the international infrastructure arm of the Shikun & Binui Group, for the global execution of projects in the civil engineering, development, and construction sectors, outside the borders of Israel. The company was originally founded in 1958, and now operates as a lead contractor, and participates in major civil engineering projects, such as the construction of roads, bridges, buildings, water and sewage plants, telecommunications, hydroelectric and thermal power stations, quarries, and processing plants.
The company’s headquarters are in Switzerland, and its main focus is in West Africa (Nigeria, Ivory Coast, Ghana, Benin, and Togo), East Africa (Uganda, Kenya, Tanzania, and Mozambique), Central America (Guatemala), South America (Columbia), Central Europe (Romania), Asia (Azerbaijan), and the United States.
SBI is a flexible, financially solid holdings group, and these qualities enable it to carry out joint ventures and partake in leading projects worldwide. The essential part of the company’s activities focuses on turnkey projects, in which the company is in charge of all aspects of the project at every stage, from the initial feasibility studies through preliminary and detailed design, and optimization, while integrating advanced engineering and construction technologies, from the initial earthwork, drainage, construction, paving, procurement, installation of equipment stages unto completing the project and delivering it to the end-customer.
SBI and its largest subsidiary, SBI International Holdings AG – Switzerland, specialize in the following:
• Public works, roads, highways, and bridges
• Power plants
• Water and sewage plants
• Public and residential buildings
• Telecommunications infrastructure
• Quarries and Material Processing for Asphalt and Concrete Mixtures
Following are several examples of S.B.I.’s projects, by fields of activity:
Public Works, Roads, Highways, and Bridges:
Columbia – Toll Road Construction and Operation:
The project includes financing, rehabilitation, construction, upgrading, operation and maintenance of a toll road for at least 25 years. The road length is 154 kilometers, divided into five segments.
Uganda – Katosi Road Project:
A project for the rehabilitation and upgrading of a 74-kilometer road. The project’s cost is $ 77,800 million. Construction started in 2015, with estimated completion by the end of 2017.
Nigeria – Benue River Bridge:
Construction of a 1,970-meter bridge, including a two-direction road, with two parallel bridges. The cost of the project is $ 240 million, with an estimated completion date in 2018.
• Guatemala – the OXEC-II hydroelectric power plant, to produce 60 megawatts of electricity. This is a follow-up project to the OXEC-I power plant and includes a river diversion, an integral concrete dam, a machine room, and electromechanical systems built while diverting the river with steel beams. Completion is estimated for October 2017, and the project’s cost is $ 83 million.
• Guatemala – the Xacbal hydroelectric power plant, to produce 94 megawatts of electricity. The project included supervision, design, supply, and construction, as well transportation, construction of an artificial reservoir, construction of access roads, protection work, construction of a pressure pipe, construction of the power plant and construction of a substation (EPC contract). The cost of the project was $ 111,286 million, and construction was completed in June 2010.
Water and Sewage Plants
SBI offers engineering services, procurement, construction, and management of complex projects for all ventures related to water and wastewater, including developing water sources, dam construction, tunnels, water reservoirs, boreholes and wells, conduit systems including pipes and pumping stations. The company has the requisite expertise in wastewater systems including planning, construction, and operation of water and sewage treatment plants and facilities.
Most of the company’s involvement in innovative telecommunication infrastructure is carried out in developing countries.
Quarries and Material Processing for Asphalt and Concrete Mixtures
In order to ensure that the raw materials used by SBI for its projects will be of high quality, the company is also active in fields that interface with infrastructure sectors, such as quarries, grinding plants for the production of aggregates, advanced plants for the production of asphalt and the production of concrete.
Shikun & Binui Solel Boneh
Line of Business
Construction, paving, roads and infrastructure, bridges, tunneling, power stations, water purification plants, ports and chimneys. In addition, Solel Boneh maintains cement, asphalt and prefabricated element plants.
Established in 1924
Solel Boneh Infrastructures is the Israeli execution arm of the Shikun Binui Group. It is the leading and most professional infrastructures company in Israel, and as well a certified contractor with all maximum classifications in all fields of activity.
Solel Boneh Infrastructures operates through four execution divisions:
• The construction division
• The roads and infrastructure division
• EPC division (Engineering Procurement Construction) – implementation of mega projects for the construction of process facilities in the field of energy and water
• The cement and ground construction company – “Cementcal”
In addition, Solel Boneh Infrastructure owns concrete plants, asphalt plants, a prefabricated elements plant and a logistics center that covers an area of 50 dunams in Palmachim, which houses advanced construction equipment that is maintained to the highest of standards. The logistic system provides all needs of the Company’s construction sites, including heavy equipment, crane services, construction aids and construction equipment.
Solel Boneh Infrastructure’s customers include major Israeli authorities and public entities, as well as private entrepreneurs, government ministries, government subsidiaries, local authorities and city associations, as well as leading development and entrepreneurship companies in Israel.
Selected recent projects, executed by the Company alone or with its partners, include:
• Tel Aviv Light Rail- Red Line – The red line of the light rail of the Dan region. Shikun & Binui Solel Boneh Infrastructures is executing the construction of the red line between Herzl Street in Tel Aviv and Ben-Gurion Street in Ramat Gan, including inter alia, digging two parallel underground tunnels of 5 kilometers long each and six underground stations (Allenby, Yehudit Boulevard, Shaul Ha’Melech and Arlozoroff in Tel Aviv, Abba Hillel, and Bialik in Ramat Gan).
• Railway Project in Israel’s North – The Company is constructing a new railway section of 120 kilometers, including laying a 22 kilometer double electric track for passengers and cargo trains, the construction of two passenger stations (the railway will connect Carmiel to the Haifa and the Coastal tracks), and the laying of the 60-kilometer-long Valley track, connecting the cities of Beit She’an and Afula to Haifa.
• Boho and Shikma Bridge – Two railway bridges – 450 and 260 meters long, respectively, serving the Ashkelon-Be’er-Sheva railway. The project won first prize in the ‘Israel Builders Association 2014 Building and Infrastructures Excellence Competition’ in the ‘Infrastructure Systems Engineering’ category.
• Pumped Storage Hydroelectricity, Mount Gilboa – A BOT project for financing, planning, construction, and operation of a 300 megawatt power station, the first of its kind in Israel, allowing for energy storage (electricity) and release, by using water reservoirs at different elevations.
• The Thermo-Solar Power Plant, Ashalim – A BOT project for financing, planning, construction, and operation of a thermo-solar power station which will generate 120 megawatts of green solar based electricity, intended for sale to Israel Electric, under a 25-year concession agreement.
• Israel Police Academy, Beit Shemesh – A BOT project to construct a 230 dunam state-of-the-art academy with 38 units and 62,000 square meters of built-up area.
• IKEA (Kiryat Ata Junction) – A shopping and commercial center, of 25,000 square meters with an IKEA store covering 24,000 square meters, and a 5,000-square meter “Shufersal Deal” supermarket.
• Sarah Wetsman Davidson Hospital Tower, Hadassah Ein Kerem, Jerusalem – The project won first prize in the 2011 ‘Safety and Hygiene Institute’ in the ‘Construction and Building Engineering’ category.
• Hadera Power Plant’s Fourth Chimney – A civil engineering project to build a fourth chimney at the site, which rises to a height of 250 meters. The chimney includes facilities for reducing the emission of hazardous substances from the production units at the site.
• Tel Aviv University Campus’ Broshim” Student Dormitories – A BOT project for the financing, planning, construction, and operation of a new student dormitory complex that was built according to the LEED Gold standard. The complex includes 1,300 apartments of several types, and houses more than 1,600 students.
• Tel Aviv-Jaffa Academic College’s Student Dormitories – A BOT project for the construction, operation, and transfer, under a 24-year concession period agreement. Offers 450 beds.
• Government Offices Building – Generi 2, National Campus in Jerusalem – A BOT project to finance, construct and operate 60,000 square meters of Government offices, according to “green building” standards.
• State Comptroller and Public Complaints Commissioner Building, Jerusalem – A BOT project to plan, construct and maintain the offices including a 13-floor building, underground service, and parking floors, according to “green building” standards.
• New Government Complex in the North – Financing, planning, construction, and maintenance of the new government complex in Upper Nazareth for 25 years.
• Hadera’s New Court House – Israel’s first “zero status energy” public building. The building’s systems will supply almost all of its energy needs (approximately 80%). A BOT project for financing, planning, construction, and maintenance over a period of 25 years,
• Highway 65-85, Kadarim Interchange – The project includes upgrading of Highways 85 and 65 to a two-lane road, the construction of an interchange at the junction of the roads and the rebuilding of an interchange to the Kahal settlement. The project includes landscape restoration and the execution of works for the benefit of the Amud and the Akbara streams, including the removal of the embankment, which for years blocked the flow of the stream.
• Highway 6 Extension – Ben Shemen – Nahshonim – Adding a fourth lane in each direction by expanding the highway. The project includes earthwork, excavation and filling, bridge signs, sealing and reinforcement sheets, milled drainage and drains, concrete infrastructures, electricity, communication and irrigation, gardening, steel railings, curbstones, bedding, aggregates and grading, agglomeration, and asphalt.
• Anaerobic Digesters – ‘Shafdan’, Rishon Le’Zion – The project greatly contributes to the solution of wastewater flowing to the sea and treating sludge, based on anaerobic stabilization.
• Midtown and “Tayelet David” Towers, Tel Aviv – Building slurry, ground anchors, foundations, groundwater degradation, digging and concrete works, through the Cementcal subsidiary.
For almost a century, the Company has successfully completed numerous national and public projects. Following is a list of some of these projects: The Israeli Parliament (Knesset); Israel Museum; Haifa Oil Refineries; Jerusalem, Tel Aviv, Haifa and Be’er Sheva University campuses; the National Water Carrier; the Dimona Nuclear Center; Kiryat Ha’Memshala in Jerusalem; the International Convention Center; Yad Va’Shem; Soroka, Hadassah, Tel Ha’Shomer, Rabin (Beilonsohn) and Rambam Hospitals; the Rotenberg Power Station in Naharayim; the Reading Power Station in Tel Aviv; Orot Rabin in Hadera; the Tel Aviv Culture Center; the Cameri Theater; Shalom Tower; the Haifa, Tel Aviv and Hadera courthouses: the Haifa and Ashdod ports; among others.
Solel Boneh Infrastructures has adopted the Group’s sustainability vision and was a pioneer in implementing unique internal standards for “sustainable management of construction sites”. Solel Boneh Infrastructures complies with the following standards – ISO 9001:2008 (management quality); OHSAS 18001 (health and employment safety), as well as ISO 14001 (environment management).
Shikun & Binui Concessions Division
Line of Business
Promotion, development, financing, and execution of “Public Private Partnership” (“PPP”) projects in Israel and abroad, in transportation, water purification, energy, and infrastructures.
Established in 1933
The Concessions Division of Shikun & Binui specializes in integrating the Group’s capabilities in financing, setting up and running large-scale infrastructure projects, along with its extensive knowledge and capabilities in financing, and its in-depth knowledge of the public sector. This unique combination makes Shikun & Binui a leading entity in the field of Public Private Partnership (PPP) projects. The scope of the investment needed for the construction of the projects is immense, and the expected lives of the projects are long term, usually for a 25-year concession period.
The Concessions Division accompanies and leads all projects in which it is intimately involved, from the first stage of the tender, the financing stage (the financial closing) throughout the construction and operation years, and up to the eventual sale. All projects of the Concession Division are planned, built, and managed according to the Group’s vision of sustainability. The Concessions Division also has offices in Texas, and Bogota, Colombia.
Major Projects now Under Construction:
East Primateral Road, in Cundinamarca, Colombia – In July 2014, Shikun & Binui won a tender for the construction and operation of a toll road in the capital of Bogota. This project is part of a broad plan of the Colombian government to invest in existing infrastructures. The concession agreement is for 25 years, including the construction period. The concessionaire is required to construct, finance, operate and maintain the highway throughout the concession period. The project cost is estimated at $ 350 million, and the project is in the process of construction and partial operation. In mid-2016, financing agreements were signed with local lenders and IDB, a regional development bank. In May 2016, the company sold 50% of its concessionaire’s holdings to an international fund.
SH 288 Toll Lanes Expansion, Texas – In May 2016, funding was completed for the planning, construction, operation, and maintenance of toll lanes in Houston, Texas. This is an infrastructure project worth an estimated $ 1 billion. The construction work (estimated cost was $815 million) began in October 2016. The project concessionaire undertook to construct, finance, maintain and operate said toll lanes (including the rapid toll routes) for 52 years, including three years for the construction of the roads, against the right to collect tolls from the rapid fast lane users. The project’s concessionaire, Blueridge Transportation Group, also collaborates with an international infrastructure contractor and financial investors. Shikun & Binui’s holds 21.62% of the concession. In addition, 50% of the contractual execution of the project will be carried out by SBA, which is part of the Group’s international contracting arm. The project is another stage in the realization of the Group’s international strategy to continue diversifying and expanding in its countries of activity, while focusing on the Americas.
Power Station Using Pumped Storage Technology, Mount Gilboa in Israel – A Build Own and Operate (“BOO”) project for the planning, financing, construction, and operation of a hydroelectric power station for the generation of electricity by pumping water. The project is being built by PSP Investments Ltd., which is held by the Shikun & Binui Group, Electra, and Infra-Red (a foreign investment fund). The Gilboa station will allow for the generation of 300 megawatts of electricity, which will be made available to Israel Electric, by pumping water from a low-level reservoir to a water reservoir located 574 meters above it. The station will have two reservoirs with a capacity of 2.7 million cubic meters, a quarried turbine room of 60 X 15 X 35 meters (equivalent to a building with 10 floors) and tunnels with a length of 4,500 meters. The cost of construction is NIS 15 billion. After 20 years of operation, the entire station will remain with the entrepreneur.
Generi 2 Government Office Building, Kiryat Ha’Leom, Jerusalem – A PPP project that includes planning, financing, construction, operation, and delivery of three 9-story buildings each, which will accommodate six government offices. The project covers over 60,000 square meters, and is worth more than NIS 500 million.
Examples of Projects Already in Operation:
The Hadera Seawater Desalination Facility – The facility provides about a sixth of the total household water consumption in Israel. Until recently, it was the world’s largest desalination facility using the reverse osmosis method. The facility is located near the Orot Rabin power facility in Hadera. It was built with an investment of NIS 1.5 billion, as a BOT project won by H 2 I D Ltd., which is held by Shikun & Binui and IDE Technologies Ltd., for the supply of 127 million cubic meters a year. The group planned, financed, and established, and now operates the facility and sells the water to the Government of Israel at a price set in advance. The concession period is 25 years (including the construction period) and at the end of the concession period, in 2032, the facility will be returned to the Government of Israel. The unique financing deal with the European Investment Bank and other European banks was awarded the prestigious Euromoney Project Finance Deal of the Year for 2007.
Carmel Tunnels Project, Haifa – This is the first toll road tunnel in Israel, and includes a system of toll road tunnels that crise-cross the city. The project was built at the cost of NIS 1.25 billion under the BOT method for 35 years, of which five years are construction and another 30 years are operation. The project concessionaire is the Carmelton Company, which was established in partnership between Shikun & Binui and a local partner. The project includes four tunnels with a total length of 10 kilometers, along with the largest interchange in Israel, with seven bridges and ramps, as well as advanced technological systems that allow for supervision and control.
Israel Police National Training Center, Beit Shemesh – This is a BOT project, won by Policiti, of which Shikun & Binui holds 50%. The project includes planning, financing, establishing, managing, operating, maintaining, and providing training services for Israel Police for a 25-year concession period, with a cost of NIS 600 million. The center opened in January 2015. Twenty police training bases were closed, and their operations were transferred to the new facility. The training center was established with strictest adherence to the existing aspects.
The New Tel Aviv Court House – The new court tower was inaugurated in September 2014. It has 24 floors above the ground and another six floors underground. The building has 52 meeting rooms, 78 judges’ chambers, and a detention center. A Private Finance Iniative (“PFI”) project, with the State bearing the return of investment and operating payments, for 20 years from the end of construction, at the cost of NIS 300 million. At the end of the period, the property will revert to the State. The tower was built as a “green building” with an emphasis on energy and water savings.
Highway 6 (Trans-Israel Highway) – This was the first BOT project in Israel, and Israel’s first toll road, and also its longest highway. Shikun & Binui won the tender for this PPP project along with a partner and a Canadian company. This partnership, under the Derech Eretz Company canopy, began working on the project in 1999, and starting in 2012, the main sections were gradually opened to the public. Currently, the road is 138 kilometers long, with 12 interchanges, two tunnels, and 100 bridges. The road is expected to be expanded in the coming years, and will total 247 kilometers. Construction of the road required high-level expertise, along with comprehensive planning, paving, maintenance, financing, construction, and operation of a sophisticated electronic toll collection system (one of the most advanced in the world) and dealing with a variety of environmental issues. In July 2013, Shikun & Binui sold the balance of its shares of Highway 6 to a consortium of institutional entities, led by the Israel Infrastructure Fund. Shikun & Binui continues to hold 35% of the company that operates the Highway.
Rehabilitation, Upgrading and Maintenance of Interurban Roads in Israel’s North (The Northern Routes) – This is a PFI project for the rehabilitation, operation, maintenance, and financing of a network of interurban roads in the north of the country with a total length of 270 kilometers for a 20-year concession period in return for periodic payments from Netivei Israel (Transport Infrastructure National Company Ltd.). Under the tender, the concessionaire rehabilitated, upgraded, and reinforced the road way. The project was completed in September 2012.
Shikun & Binui Real Estate Ltd.
Line of Business
Locating and Acquiring Land in Israel, Planning, Design, Construction, Development, Improvement, Marketing, Leasing, and Rental.
Established in 1933
Shikun & Binui Real Estate is the leading real estate company in Israel and the development arm of the Shikun & Binui Group in Israel. The Company has been operating for over 80 years, during which it has built over 200,000 residential units for over one million Israelis. Currently, 2,400 residential units are being constructed in 22 projects nationwide, as well as over 100,000 square meters of commercial space and student dormitories.
The activities of Shikun & Binui Real Estate are carried out within the boundaries of the State of Israel and include mainly, the initiation of projects for residential construction designated for sale, including the acquisition, planning, improvement, development, and sale of land owned by the Group, as well as initiating projects for the construction of office buildings and industrial and commercial buildings, to generate income from rental and betterment until eventual sale.
Shikun & Binui Real Estate holds substantial reserves of thousands of dunams of land on which thousands of housing units can be built. The reserves also include “old” land, the rights of which have been purchased or leased since the 1950s.
Shikun & Binui Real Estate is working with the relevant planning bodies to change the zoning rights of the land or to change the Urban Planning Scheme and to improve the land. Said, inter alia, by increasing building rights, changes in allowable uses and changes in construction plans required by the Urban Planning Scheme. In addition to residential construction, Shikun & Binui Real Estate also engages in the development and marketing of areas designated for offices, commercial centers, leisure, industry, storage, student dormitories, parking lots and gas stations. The Company has gained considerable experience in the establishment and management of income-producing properties such as the “Ir Yamim” Mall in Netanya, the “Design Plus” Shopping Center in Be’er Sheva, the “Sha’ar Ha’Tzafon” Mall (IKEA) in Kiryat Ata, the Givatayim Mall, and the BOT project of student dormitories at the Tel Aviv University (the Einstein and Cypress complexes).
Shikun & Binui Real Estate’s projects are planned and built in accordance with the principles of sustainability adopted by the Shikun & Binui Group as a vision. The Company’s buildings comply with the Israeli standards for green construction, and there are projects that meet the stringent International LEEDS. In 2016, the rate of sales of residential units peaked, and the Company sold 926 residential units, yielding NIS 1.607 billion. In 2016, net income Shikun & Binui Real Estate totaled NIS 220 million, compared to NIS 202 million in 2015 – an increase of 9%. Shikun & Binui Real Estate was selected as the “Superbrand” in the ranking of Superbrands 2016, received a “Platinum Plus” rating from “Ma’ale 2016” and was chosen as the leading residential real estate company in Israel according to the annual survey of Globes for 2017 and as the leading residential real estate company in Israel according to the Globes’ Brands Index published in June 2017.
Selected Residential Projects of Shikun & Binui Real Estate:
Pardes Hanna-Karkur Dreams – an 8-building project offering a unique residential experience. In 2013, the company began construction of the neighborhood, with 450 housing units.
Givat Shmuel Dreams – a prestigious “green project” in South Ramat Hadar. The project includes three towers of 22 floors, and each tower has 106 housing units of various sizes – 3-6 rooms, mini penthouses, and huge penthouses.
Tzuki Ha’Shmura Dreams – a project that is planned in perfect coordination with nature, on the first line to the sea and the Netanya Iris reserve. The three project towers face the sea and its reserve. The buildings are connected to each other by avenues that allow a resident to move from building to building in a way that is protected from wind, sun, and rain.
TIME Tower – a 38-story building in the City Center complex of Ramat Gan. The building offers 194 housing units of various sizes, characterized by an elegant and prestigious design. Each housing unit has an amazing urban view, and each has a spacious balcony, storage room, and underground parking. The building uses “green” planning in a way that benefits both the environment and the residents, for example, economic planning of land resources and a quality air conditioning system that enables optimal utilization of energy.
Hadera Park Dreams – a project being built in the Hadera Park neighborhood, nearby Highway 9, which is a new entrance to the city from Highway 6. The project offers 1,200 housing units of various sizes. The buildings are being built around a 90-dunam park. The Company is currently in the process of building and marketing the six towers on the park.
Nahalat Rishon Le’Zion Dreams – a project of 5 buildings of 7-10 stories and a total of 208 housing units, with a variety of units in each building – 3-5 rooms, mini penthouses, and penthouses, designed and constructed according to green building standards.
Green Barnea Dreams in Ashkelon – a project being built in cooperation with the Machluf Bechor Company in the high-quality Barnea neighborhood of Ashkelon. This is the first project built in the city according to green building standards. The project offers 900 housing units of diverse sizes and a variety of buildings.
Kiryat Ono Dreams – The project is bordered by the old neighborhood of Kiryat Ono and adjacent to Pardes Reizfeld. At the center of the project is a huge 40-dunam park that includes paths, squares, playgrounds, and green areas. The neighborhood is close to main traffic arteries, such as the Geha Highway, the Ma’ccabit Highway, and the Trans-Israel Highway. The current phase is part of an evacuation-reconstruction project and includes 180 housing units in 4 towers.
Offices and Commercial Centers
In addition to residential construction, Shikun & Binui Real Estate also develops and markets office and commercial space such as shopping malls, leisure facilities, industrial and storage facilities, student dormitories, parking lots and gas stations, and has extensive experience in the construction and management of income-producing properties, all according to green construction principles.
“Sha’ar Ha’Tzafon” Shopping Mall – In 2014, Shikun & Binui Real Estate, along with the Bronfman-Fisher Group, launched the “Sha’ar Ha’Tzafon” shopping mall in Kiryat Ata, the first green mall in Israel to be built according to the American LEED standard. The project covers an area of approximately 25,000 square meters, combined with a 24,000-square meter shopping mall and a” Shufersal Deal “store covering an area of 5,000 square meters. The mall was built by Solel Boneh, which also belongs to the Shikun & Binui Group. The “Sha’ar Ha’Tzafon” shopping mall is the largest shopping center in the north and one of the largest in the country.
Design Plus – an open and green shopping center in Be’er Sheva that covers an area of approximately 17,000 square meters. The complex is essentially an open shopping avenue, where local vegetation is used, maximizing natural lighting and natural ventilation.
Student dormitories at Tel Aviv University – In 2008, Tel Aviv University and Shikun & Binui Real Estate signed a contract under which Shikun & Binui Group undertook responsibility for renovation and upgrading of the Einstein dormitories (1,000 beds), construction of a new dormitory complex at the “Broshim” compound (1,600 beds) and operation of the two compounds. This is the first green campus in Israel to receive the US LEED standard for green construction at the “Zahav” level.
Ir Yamim Mall – In March 2012, the mall was opened to the public in Netanya’s prestigious Ir Yamim neighborhood. The mall was built by Shikun & Binui Real Estate in cooperation with Azorim, and covers an area of 58 dunams, of which 70,000 square meters is built up, and offers 23,000 square meters of fashion, entertainment and leisure space in two main commercial floors and a lower commercial floor, along with 2,000 parking spaces.
Shikun & Binui Renewable Energy Ltd.
Line of Business
Initiation, planning, development, financing, construction, and operation of power plants for the generation of electricity based on natural gas and renewable energy sources, including solar thermal and photovoltaic energy, wind, and hydroelectric energy
Established in 1995
Shikun & Binui Renewable Energy is the energy arm of the Shikun & Binui Group. Since its inception, the Company has been involved in the initiation, planning, construction, and operation of facilities for the generation of electricity in Israel and abroad; facilities based on natural gas and renewable energy, including thermo-solar and photovoltaic solar energy, wind energy and hydroelectric energy. The Company also specializes both in independent entrepreneurship and in cooperation with the public sector (in PPP projects).
Shikun & Binui Renewable Energy invests significant amounts of its own equity, in its projects and takes a central part in the construction and operation of each project over time, by itself, through related companies and third parties. In this framework, the Company promotes several projects, including:
• The Ashalim Thermal Solar Power Plant – The Company’s current renewable energy flagship project. This is the first thermal solar based power plant in Israel, using the parabolic trough collector method, which the Company finances, constructs and operates, under the BOT method. The plant will have a capacity to generate 110 megawatts (one of the largest of its type worldwide).The generated electricity will be sold to Israel Electric under a 25-year agreement, starting from the date of operation. The plant will be constructed at a cost of $ 1 billion and is expected to be completed by 2018. The project is expected to contribute significantly to the Negev’s economy and employment.
• The Shneur Negev Thermo-Solar Power Plant – The Company, in partnership with Kibbutz Tze’elim in the Negev, is promoting a project for the planning, financing, construction, and operation of a 120-megawatt solar power station, on kibbutz land, covering 1,400 dunams. The project was declared a national infrastructure project and received a conditional license to generate electricity in accordance with the Electricity Sector Law. Construction is expected for the last quarter of 2017.
• Photovoltaic (PV) solar installations in Israel – the Company has been working for several years to develop photovoltaic solar projects on land in Israel, in medium and large scopes, based on the Government’s designated arrangements and tariffs, through the acquisition of rights in land, independent development projects, and other ventures. Recently, the Company won tariff tenders issued by the Electricity Authority with seven projects totaling 70 megawatts. The projects will be built during 2017-2018 and then will be connected to the electricity grid.
• Expanding the Etgal Ashdod Power Plant – The Company, through its Etgal Energy subsidiary, is Israel’s first private electricity producer and owns an electricity generation power plant. The Ashdod power plant expansion project will include the construction of a natural gas based 200-megawatt plant, utilizing existing infrastructure.
Shikun & Binui Renewable Energy provides comprehensive solutions, beginning with the development stage, through project construction and onto operation. The Company specializes in government liaisons, financing, engineering/design, construction and management of partner consortiums, maintenance, etc. Following are examples of several of the Company’s activities in various stages:
Planning and Construction
The Company provides for its own use (vis-?-vis projects it initiates) and its customers, various solutions for the generation of electricity using solar systems in industrial buildings, public and business institutions and plants designated for the generation of electricity. This is based on the leading technologies in the market, after carefully selecting the components that meet the most stringent standards. To date, the Company has built small and medium-sized photovoltaic installations of 50 megawatts, in locations such as Hatzerim, Timna, and Sde Boker. The Company just recently completed its construction and connection to the electricity grid of a high-voltage project with a capacity of 18 megawatts in the Nevatim settlement. During 2017-2018 the Company is expected to build an additional 170-megawatt power plant.
Shikun & Binui Renewable Energy operates its own power plants (photovoltaic solar technology and conventional technology) and offers its customers operating services for solar power plants.
• Photovoltaic projects in Spain – The Company, through its “Gilatz Spain” subsidiary, held three photovoltaic solar parks in Spain. The parks have a total installed capacity of 15 megawatts, and they were built with a total investment of about 100 million. The parks generate clean electricity and supply it to the electricity grid in Spain. The Company recently sold its holdings in these projects.
• The Etgal power station in Ashdod – The Company through its Etgal Energy subsidiary operates the Etgal Power Plant in Ashdod, which has a generation capacity of 26 megawatts operated at peak hours only. The electricity generated at the station is sold exclusively to Israel Electric.
Shikun & Binui
Real Estate Development (RED)
Line of Business
Entrepreneurship, planning, and marketing of residential projects, offices, commercial areas, and land in Europe
Established in 2001
Shikun & Binui Real Estate Development (RED) is the international real estate development arm of Shikun & Binui Group. The company operates in the CEE region, primarily in the capital cities of Poland, the Czech Republic, Serbia, Romania, and Hungary. RED operates through local subsidiaries, which employ highly skilled local teams, experienced in all fields of real estate development (engineering, marketing, finance, etc.) and are well acquainted with the local markets.
The company specializes in residential and non-residential construction projects, intended for sale and/or rental, as well as operation of income-producing properties intended for rent and/or future development.
Since its founding, RED has completed the construction of more than 3,200 housing units. The company is currently constructing additional 1,900 housing units in nine projects. RED has 80 employees and is headquartered in Amsterdam.
Selected RED Residential Projects:
• Modranka Rezidence – Prague, Czech Republic. A high-quality residential neighborhood overlooking the Vltava River, currently under construction in the developing Modrany district. The project offers 350 housing units and a commercial/office building. At the center of the project are a large park and playground facilities.
• 85 Grzybowska – Warsaw, Poland. A residential project is constructed in Wola district, in the area called City Center West, which is a vibrant area that combines mixed uses – commercial, office and residential. The project offers 501 housing units, as well as commercial space on ground floor and is adjacent to two other projects of the company – KBP, a Class A office building, and the residential and office MetroPoint project.
• Central Garden – Belgrade, Serbia. A large and unique project that is in advanced construction stages in the city center, which offers 375 housing units, an office building and commercial spaces on ground floor. At the center of the project are a large park and two underground parking levels. The project is located in proximity to several large parks and offers diverse community services, such as kindergartens, schools, and hospitals.
• Vo?dove kapije – Belgrade, Serbia. A recently acquired residential project located in the historic part of Belgrade, in the Vo?dovac district. The construction of Phase 1 has begun and will offer 129 housing units, part of a 700 housing unit new neighborhood , an office building and commercial spaces. The neighborhood is expected to include underground parking and a central park.
• City-Point – Bucharest, Romania. A residential neighborhood that offers more than 2,000 housing units. Construction of Stage A, which offers 215 housing units, had just been completed. The project is in Sector 1, in an area witnessing a significant development momentum, including office buildings, a shopping mall, a metro station, and road infrastructure, located just a short drive from the city center and the airport.
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