Gafen Real Estate Acquires Stake in Wi-Box for $20 Million

Gafen Real Estate and Renewal, controlled by Chairman Tzachi Abu, is expanding its urban renewal activities through a strategic agreement to purchase nearly half of the controlling core in the public company Wi-Box Real Estate for approximately NIS 76 million (about $20 million USD). This marks Gafen's first strategic expansion since its partnership with Leumi Partners earlier this year.

Under the deal, Gafen will acquire about 93 million Wi-Box shares, representing 49% of the company's controlling core. This will give Gafen approximately 25.4% of Wi-Box's total shares. The transaction values Wi-Box shares at NIS 0.812 each. Gafen will also appoint half of Wi-Box's board members, leading to joint control of the company.

Tamir Cohen, former CEO of Shikun & Binui, will join the venture, acquiring 5.4% of Gafen's stake and taking a role in Wi-Box's management. This move is expected to significantly boost Gafen's project pipeline, adding over 40 projects with thousands of housing units in the Tel Aviv and Gush Dan areas.

Wi-Box, founded in 2014, currently manages 44 projects comprising approximately 5,429 housing units, with a focus on urban renewal. The company also has income-generating real estate assets totaling about 50,000 square meters in office and hotel sectors, alongside 639 residential units. Wi-Box's assets were valued at approximately NIS 1.6 billion at the end of 2025, with equity of about NIS 424 million in the first half of the year.

Tzachi Abu stated that the acquisition is a significant step in Gafen's strategy to expand its project portfolio and urban renewal operations, noting that the current slowdown in the housing market presents opportunities for portfolio growth. The deal is subject to the approval of the Antitrust Commissioner and is expected to be completed within 90 days.