Meitav Pension Buys Stake in Shapir Infrastructure Projects for $28 Million

Meitav Pension and Provident Funds is acquiring an 11.5% stake in Shapir Engineering's limited partnership, which holds rights to major transportation infrastructure projects, for approximately NIS 109.25 million (about $28 million USD). This move significantly expands Meitav's exposure of its members' funds to long-term, revenue-generating national infrastructure projects.

The partnership includes stakes in three key projects: the Highway 6 North expansion, Highway 16 entering Jerusalem, and the Highway 1 fast lane to Tel Aviv. These projects have concession periods extending for many years, offering a long-term investment horizon for Meitav.

This is the third phase of Shapir's strategy to bring institutional investors into these projects. In May, Migdal and Amitim acquired a combined 38.5% for about NIS 366 million, followed by Clal in July acquiring an additional 20% for approximately NIS 190 million. Upon completion of the Meitav deal, institutional investors will collectively hold 70% of the partnership, with Shapir retaining 30% and continuing to manage the projects.

Collectively, institutional investors have invested or are expected to invest around NIS 665 million, valuing the partnership at approximately NIS 950 million. Shapir will continue as the general partner, responsible for the ongoing management and operation of the partnership and its projects. The investment provides Meitav's members with exposure to a stable, long-term cash flow from infrastructure assets, indexed to inflation with government safety nets.

The deal is still subject to regulatory approvals, including from the Competition Authority and Tax Authority, as well as financing and project owner consents. For the public, this signifies a growing allocation of long-term savings into major Israeli infrastructure projects beyond traditional capital market investments.