Shikun u'Binui Holdings Ltd. (TASE: SKBN) and G4S Israel Ltd. (Hashmira Group) have secured NIS 725 million in financing to build Policity - the Israel Police training base in Beit Shemesh. Israel Discount Bank (TASE: DSCT) is providing 475 million and Harel Insurance Investments and Financial Services Ltd. (TASE: HARL) is providing NIS 250 million. The companies can draw on the credit line over five years, and will repay it over 21 years.
Policity is a NIS 2 billion project. It will serve all Israel Police units, and include training facilities, firing ranges, sports and other facilities in 42,000 square meters of buildings on a 230-dunam (57.5-acre) site. Shikun u'Binui subsidiary Shikun u'Binui Solel Boneh Building and Infrastructure Ltd. will build the project at a cost of NIS 600 million.
Shikun u'Binui, controlled by Shari Arison, and G4S own the project's special purpose company in equal shares. Under the BOT (build, operate, transfer) project, they will design and build Policity, and maintain and operate it for 25 years. John Bryce will provide the training services.
Police Commissioner Yohanan Danino said, "The signing of the agreement to build the Israel Police training facility is an additional part of the Police's long process to improve the professionalism of policemen and women, and the service they provide Israel's citizenry. Construction of the center - one of the most sophisticated and advanced in the country - is a strategic step. It will consolidate all the Police's training units under one roof and will be a center of organizational know-how and research. Putting the cop at the center of the organization will result in a better police force - professional, determined, and more service oriented."
Shikun u'Binui's share price fell 0.6% in morning trading to NIS 7.07, giving a market cap of NIS 2.8 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on April 5, 2012
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