Israeli Real Estate Developer Best Faces Larger Financial Irregularities, Must Restate Reports

Best, an Israeli real estate developer controlled 69% by the Tanus family, is facing escalating financial troubles. After initially reporting suspected irregularities prior to its May IPO, an external audit revealed that the financial provisions were significantly larger than previously disclosed. The company must now restate its 2025 annual and first-quarter 2026 financial reports, which were part of the IPO prospectus.

The external review found that approximately 2.2 billion shekels were paid from a subsidiary’s funds to accounts linked to the controlling shareholders and their relatives for private work done by subcontractors on properties owned by these shareholders. This amount was repaid with interest of 2.3 million shekels. This contradicts the company’s earlier claim that payments totaled up to 1 million shekels and occurred only before it became public. In fact, payments took place between September 2025 and June 2026, after the company’s public listing.

Further concerns include additional irregular payments of about 1 million shekels still under investigation, and an unlawful payment of roughly 100,000 shekels to a third party outside company procedures. The restated reports will show an increased net profit of approximately 310,000 shekels for 2025 and 468,000 shekels for Q1 2026.

Best completed its IPO in May with a valuation near 2.9 billion shekels. Following the disclosure of these irregularities, its stock price dropped about 6% during trading, lowering the market value to approximately 2.77 billion shekels. The company’s troubles highlight ongoing scrutiny of financial practices in Israel’s real estate sector.