IIF sells 10% of the Jerusalem Light Railway for NIS 70 million

March 08, 2016 | Calcalist

The Teachers’ Continuing Education Funds acquired the stake from Israel Infrastructure Fund (IIF) at a value of NIS 700 million.  The sale reflects a return to IIF that is five times its investment in the CityPass Railway Concession made five years ago.  It will continue to hold 20% of CityPass through its second fund – IIF II

Another exit – the fifth for Israel Infrastructure Fund.  “Calcalist” has learned that the Fund sold 10% of CityPass, the Jerusalem Light Railway Concessionaire, to the Teachers’ Continuing Education Funds for NIS 70 million.  The Fund reported the sale to its investors, which reflects a value of NIS 700 million.  The sale is contingent on the approval of the regulatory bodies.

The sale reflects a return to IIF of five times on its investment in CityPass, within five years.  Following the sale, IIF continues to hold 20% of CityPass through its second fund – IIF II.  Ashtrom holds 50% of the shares; Harel owns 20% and the Teachers’ Continuing Education Funds hold 10%.

The sale represents a significant change in the value of CityPass, compared with the acquisition by Itzhak Swary’s Allied Investments of 12.5% of its shares from Ashtrom in 2013, at a value of NIS 300 million.  These shares were sold back to Ashtrom, at a price that was not disclosed.

The current exit is IIF’s fifth, including the sale of its holdings in Highway 6 for NIS 135 million to Clal Insurance, and the sale of preferred shares in Dalia Power Energies to the Amitim Pension Funds for NIS 250 million.

IIF, a private investment fund run by Yaron Kestenbaum, was established by the Harel Insurance Company, Attorney Yehuda Raveh and Kestenbaum, and it is engaged in the infrastructure, energy and transportation industries.  It has $1.1 billion under management, with holdings in the Connect Light Railway Operating Company, Netivey Hayovel – Highway 431, the desalination plant in Palmahim and Swissport, the cargo terminal in Ben Gurion Airport.  Presently, it is raising capital for a third fund, totaling NIS 800 Million.


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