Hadassah Holds Real Estate Valued at More Than $17 Million

Analysis based on list of assets included in petition for protection from creditors; hospital employees on strike over financial difficulties.

Hadassah Medical Center holds real estate valued at more than 60 million shekels ($17 million), according to an estimate by TheMarker based on a list of assets that was included in the center's petition filed last week for court-ordered protection from its creditors.

The medical center’s real estate includes more than 20 properties. Though it is best known for its two Hadassah University hospitals in Jerusalem, on Mount Scopus and in Ein Karem, the medical center also owns buildings used for housing, offices and commercial space, as well as two plots of agricultural land.

Employees at the two hospitals were on strike Monday because of the financial troubles, with only emergency services and labor and delivery operating normally.

The estimated value of the properties was derived based on the rents paid to Hadassah, assuming an approximate yield of 6% for the offices and a conservative 3% yield for the residential property. It does not include the value for the agricultural land or two buildings for which a rental value is not listed.

Most of the properties are in Jerusalem, including a clinic located in a historic structure on Strauss Street, near Bikur Holim hospital, which is rented out to Maccabi Health Services for 1.43 million shekels a year.

Another building, located at 42 Jaffa Road, near Zion Square, is used for offices, apartments and stores. The total rental income for that building is 1 million shekels a year.

Outside of Jerusalem, Hadassah owns a clinic in Beit Shemesh that is rented out for 26,000 shekels a year and a clinic on Reines Street in Tel Aviv that brings in 218,000 shekels in annual rent payments.

The medical center also owns two plots of land in Hadera, a 32-dunam (eight-acre) plot in the southern part of the city, and another of four dunams in the northern part of the city, near the railroad tracks but not close to any residential neighborhoods.

Hadassah Medical Center owes 170 million shekels to Union Bank, which provided the credit for building its new hospital tower at its Ein Karem campus.

Union Bank has guarantees against the debt, including a number of properties whose total value is about equal to the total debt. The guarantees include the clinic on Strauss Street, the building on Jaffa Road and others.

The asset list does not include the floor space of the properties, so this analysis does not take into account whether the rents are set at market rates.

Olivier Fitoussi