Phoenix to Invest $370 Million in Fattal's Office Operations

Fattal Group is expanding its office operations by merging its shared workspace division, ROOMS, with Switchup, a company specializing in office setup and customization for corporations. Phoenix Insurance will join as a significant partner, acquiring approximately 20% of the merged entity. The combined company, which will also include rights to the "House of the Rose" property in Givatayim, is valued at approximately 1.4 billion shekels (about $370 million USD).

The merger consolidates two existing office ventures where Fattal already holds stakes: ROOMS, in which Fattal owns 90.1%, and Switchup, 50% owned by Fattal. Following the deal, all operations will be consolidated under the merged Switchup company. Fattal Hotels will remain the largest shareholder with about 45.5%, followed by Switchup's founders with 29.5%, Phoenix with 20%, and Yuval Bernstein, Chairman of Fattal Holdings, with 5%.

Phoenix's investment involves contributing approximately 50% of the rights to the "House of the Rose" building, located at 53 Derech HaShalom Street in Givatayim. This property comprises about 28,000 square meters of office space across 22 floors, along with storage and parking facilities.

The newly formed company is expected to manage and operate a total of approximately 364,000 square meters of office space, including 25,000 square meters currently under construction. Most of these spaces are situated in Tel Aviv and Ramat Gan. The merged entity will encompass both ROOMS' shared workspaces and Switchup's corporate office solutions. Additionally, it will engage in the development and operation of sports and leisure complexes, offering concierge and related services.

Prior to the merger, certain ROOMS assets, including an event hall at the City Tower Hotel leased to Switchup and two office floors under construction in Rishon LeZion's Aluf complex, will be transferred to ROOMS' partners.