AIRPORT CITY, Israel, June 12, 2018 /PRNewswire/ -- Shikun & Binui Ltd. (TASE: SKBN.TA) today announced that its subsidiary project company ICT City in the Negev (in which Shikun & Binui and Africa Israel Properties hold equal percentages), was selected as the best bid for a Ministry of Defense (MoD) tender for the design, build, finance, operate and maintain (DBFOM) project of the IDF Telecom HQ in Be'er Sheva, for a period of 25 years. The construction joint venture will comprise Solel Boneh and Danya Cebus (in equal parts) and the expected construction period is approximately 60 months until completion . After the construction period, the project will be operated and maintained by Shikun & Binui and Africa Israel Properties for 20 years. The IDF Telecom HQ is expected to include a number of different units and is being established as part of the relocation of Israel's Defense Forces (IDF) army bases to the Negev area in Southern Israel. The project will be financed by a consortium led by Bank Leumi together with a number of institutional and banking institutions.
Bank Leumi issued the following statement: "We congratulate Shikun & Binui and Africa Israel Properties on the win of this tender. The challenging process of accompanying and advancing this transaction on the financing side reflects our organizational and financial capabilities for project financing in Israel. Through our professional and creative solutions, we enabled the successful financial closing and the award of the group of this tender."
Avi Barzilai, Deputy CEO of Africa Properties, said, "We are proud and welcome the selection by the Ministry of Defense of Shikun & Binui and Africa Israel Properties, as the best bid in the tender that was published for the establishment and operation of the IDF's Telecom HQ. The new campus, which is to be established near Ben Gurion University in Beer Sheva, Southern Israel, is a strategic project that represents an important expression of confidence by the MoD in both companies. This reflects our ongoing successes in establishing infrastructure projects under BOT and PPP (private-public sector partnership) schemes."
Allon Raveh, CEO of Shikun & Binui Concessions: "Being chosen as preferred bidder is a strong expression of faith and trust in our Group by the Israeli Government and the banks. We are thrilled with the opportunity to lead the most prestigious defense concession that is currently under development in Israel, and we are confident in our ability to perform this project successfully to the full satisfaction of the client and the banks."
About the Shikun & Binui Group
The Shikun & Binui Group is a global construction and infrastructure company that operates in Israel and internationally in seven segments: 1) infrastructure and construction contracting outside of Israel; 2) infrastructure and construction contracting within Israel; 3) real estate development within Israel; 4) real estate development outside of Israel; 5) renewable energy; and 6) concessions. The Group's activities focus on large, highly complex projects carried out for entities in private and public sectors with a focus on sustainability.
This summary announcement was prepared solely for the convenience of the reader and does not replace Shikun & Binui Ltd.'s (hereafter – "the Company") full report. The information contained in this announcement is, by its nature, incomplete. All of its contents are provided as a supplement to the Company's report, and are subject to the declarations therein stated. This announcement includes forecasts, assessments, estimates and other information relating to the Company or its subsidiaries, or to other parties or to future events and matters, the extent of whose realization is not certain and is not under the sole control of the Company (forward-looking information, as defined in the Securities Law-1968). The key facts and data serving as the basis for this information are facts and data, among others, related to the current status of the Company and its businesses, facts and data relating to the current status of the operating segments in which the Company engages in its areas of operation, and other macroeconomic facts and data known to the Company on the preparation date of this presentation.
It is understood that forward-looking information does not constitute a fact and is based solely on subjective assessments. Forward-looking information is uncertain and for the most part, is not under the Company's control. The realization or non-realization of the forward-looking information will be influenced, among others, by the risk factors that characterize the Company's operations, as well as developments in the general environment and external factors that impact the Company's operations. The Company's future results and achievements could differ significantly from those presented in this presentation. The Company is not obligated to update or modify the said forecast or assessment, and is not obligated to update this announcement. This announcement does not constitute an offer to purchase the Company's securities or an invitation to receive such offers. An investment in securities in general, and in the Company in particular, carries risk. One must take
SOURCE Shikun & Binui Ltd.