Phoenix to acquire 20% stake in Fattal's coworking merger at a valuation of 1.4 billion NIS
Fattal Holdings is merging its ROOMS workspaces with SwitchUp. Following the deal, valued at 1.4 billion NIS, the Phoenix insurance group will hold a 20% stake in the combined entity.
Fattal Holdings reported to the stock exchange this morning that the operations of the ROOMS workspaces will be merged into SwitchUp, and Phoenix will receive 20% of the merged company. This follows negotiations first reported by Calcalist. The company's valuation for the deal stands at 1.1 billion NIS before Phoenix's entry and 1.4 billion NIS after it.
Both companies operate workspaces and are held by Fattal — SwitchUp at 50% and ROOMS at 90%. In exchange for the shares allocated to it, Phoenix will transfer to the merged company its shares in a subsidiary that is set to hold 50% of the rights in Beit HaVered in Givatayim. Previously, ROOMS will transfer most of its assets to its partners and be merged into SwitchUp. ROOMS partners will receive about 60% of the merged company's shares.
Beit HaVered is at the center of a dispute between Phoenix and the Capital Market Authority, which criticized the company in a report it published regarding the distribution of assets worth 1.4 billion NIS that were transferred to Phoenix Finance, the holding company of Phoenix.
After the completion of the deal, Fattal, through Fattal Hotels, will hold 45.5% of the company. Yuval Bronstein will hold 5%, the founders of SwitchUp 29.5%, and Phoenix 20%. Before the completion of the deal, SwitchUp is expected to distribute a dividend of about 80 million NIS to its shareholders. Fattal invested about 240 million NIS in the transferred activity. After the deal, the value of its holding in the merged company is expected to stand at 620 million NIS, and the deal reflects a value creation of 400 million NIS on the investment over the years.
The merged company is expected to focus on the activity of dedicated offices and shared workspaces, alongside concierge services and wellness and sports complexes. It will hold office complexes with a total area of about 350,000 square meters, most of them in Tel Aviv and Ramat Gan. About 280,000 square meters have already been opened or are in the stages of opening, and the remainder is expected to open in 2026-2027.
In 2025, the ROOMS and SwitchUp activities generated revenues of about 315 million NIS and an EBITDA of about 82 million NIS for Fattal, with an occupancy rate of 93%. The company expects the occupancy rate to rise to 95% during 2026.
"The entry of Phoenix strengthens the partnership structure, adds capabilities for further growth, and allows us to continue developing the activity with a long-term vision, alongside excellent partners," stated Yuval Bronstein, Chairman of Fattal Holdings.
Yoni Porat, CEO of SwitchUp, said: "We are happy about Phoenix joining as a partner for the road ahead and see it as a significant partner for the continued growth and expansion of SwitchUp in Israel and globally."
Guy Porat, CEO of Phoenix Real Estate, stated: "This project constitutes another layer in the ongoing and successful cooperation between the groups, and we are confident that the committed management of SwitchUp will take the company to new heights."
