Aviv Real Estate Shelves IPO, Will Raise 200 Million Shekels in Bonds

Aviv Real Estate Group, controlled by Doron Aviv and Daphna Har-El, is set to raise 200 million shekels through a bond offering after abandoning plans for an initial public offering. Last month, the company had also considered an IPO at a pre-money valuation of 1.5 billion shekels, with Orion leading the underwriting.

The revised plan drops the equity raise, which had included about 375 million shekels in fresh capital alongside the bond issue, all intended to go into the company’s coffers. Aviv Real Estate is a long-established developer founded in 1963 by the late contractor and entrepreneur Moshe Aviv, father of the two siblings. Over the years it built landmarks in the Tel Aviv metropolitan area, including Moshe Aviv Tower in Ramat Gan and Sapir Tower in the Bursa district.

Today the company operates in three main areas, development, income-producing real estate, and rental housing, and also has a small U.S. business through two debt funds. Its development pipeline includes an 18-story tower on Herbert Samuel Street in Tel Aviv with about 50 apartments, roughly 120 hotel units and retail space, plus the “Park Aviv, New Ramat Ayalon” project with about 722 apartments and more than 4,700 square meters of commercial space.

The company’s key income asset is Rothschild 22 Tower in Tel Aviv, where it holds about 42.5%. The 29-story, fully leased building is valued at about 669 million shekels. Its main tenants are Fattal Hotels, which operates the Rothschild 22 hotel, and Meta, whose offices occupy floors 21 through 24. Last year the tower generated about 45 million shekels in revenue and 40 million shekels in NOI. Aviv’s rental-housing asset, “Avi Sheli” in Ramat Hasharon, has 281 units, is nearly fully occupied, is valued at 706 million shekels, and produces annual income of about 25.6 million shekels.

For 2025, Aviv Real Estate reported revenue of 96 million shekels, down 44% from 2024, mainly because construction of the Wisotsky project in Tel Aviv finished late in the prior year. Net profit reached about 39 million shekels, reversing a loss of 90 million shekels in 2024 that was tied to high tax expenses from the sale of an asset to Melisron. The postponed IPO also delays another exit for the Aviv-Har-El siblings, following earlier sales of Osaf in 2007 and Aviv Yizum between 2022 and 2024.