Allied Shifts Residential Development to Metropolis in Strategic Real Estate Move
Allied Group, one of Israel's largest and oldest holding companies, is quietly advancing a strategic shift in its real estate operations by transferring its residential and urban renewal activities to its subsidiary Metropolis. Established about 15 years ago with a focus on urban renewal, Metropolis is now expanding into residential development on vacant land. This transition began after Allied Real Estate completed the acquisition of Amir Shealtiel's stake in Metropolis for 200 million shekels in early 2025, valuing the company at 800 million shekels. Shortly thereafter, Metropolis CEO Udi Blum was also appointed CEO of Allied Real Estate, creating a direct managerial link between Metropolis's residential projects and Allied's income-producing assets.
The integration is evident beyond ownership, extending to management, strategy, and operations. Metropolis now manages Allied's share in the "This is Tel Aviv" project at Sde Dov, which includes about 230 housing units and is co-owned with Levinstein and Mivne. Metropolis currently promotes around 50 projects at various planning and execution stages, totaling approximately 13,000 housing units, with 1,250 units already completed. Notable completed projects include the Green Park complex in Neve Sharet, Givatayim Metropolis project, and Herzliya's first urban renewal project.
Among ongoing developments are the Hadar Yosef project in northern Tel Aviv with 740 units and 1,200 square meters of commercial space, valued at over two billion shekels, and the A.F.K project on Padova Community Street in partnership with Shikun & Binui, featuring 292 units across eight buildings. The transfer of Allied's residential activities to Metropolis is expected to add thousands of additional housing units in planning stages, including the prominent Hof HaTkhelet complex in Herzliya, planned for 12,500 units alongside commercial, office, and hotel spaces. Allied owns land rights there for several thousand apartments, with a detailed plan draft recently published by the local committee.
Allied's residential portfolio also includes about 150 units in the Gra complex in Neve Shaanan, Tel Aviv, 300 units in Hod Hasharon under the Nof Yarkon plan, and 10,000 square meters of residential space on Hasadna Street in Jerusalem. Allied is a major private holding group active in automotive, logistics, infrastructure, and real estate sectors, with significant holdings such as Champion Motors, Auto-Deal, UPS Israel, and Carmel Tunnels. Its real estate arm is mainly known for income-producing properties totaling about one million square meters, including office towers, shopping centers, industrial parks, and logistics centers. Key assets include Big Fashion Glilot (in partnership with Big Group), several towers in Bnei Brak, and a 42-story office tower under construction in Jerusalem's Sha'ar Ha'Ir business district. Neither Metropolis nor Allied Real Estate provided comments on the developments.
