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

Gafen Real Estate and Renewal, controlled by Tzachi Abu and managed by Nati Gilboa, is expanding its urban renewal operations by acquiring a substantial stake in Wi-Box Real Estate. The company has signed an agreement to purchase approximately half of the controlling interest in Wi-Box for about 76 million shekels (approximately $20 million USD). This move significantly broadens Gafen's scope and exposure to urban renewal projects, particularly in the Tel Aviv and Gush Dan areas.

Under the terms of the deal, Gafen will acquire roughly 93 million Wi-Box shares, representing about 49% of the shares currently held by the controlling group and approximately 25.4% of the company's total equity. The purchase price is set at 0.812 shekels per share. Gafen will also gain the right to appoint half of Wi-Box's board members.

Tamir Cohen, formerly CEO of Shikun & Binui, is also joining the transaction. Cohen is expected to purchase 5.4% of Gafen's stake in the deal and will integrate into Wi-Box's management. This strategic move involves not only a capital investment but also a shift in the company's management structure.

The acquisition dramatically increases Gafen's project pipeline. Wi-Box currently manages over 40 projects comprising thousands of housing units, primarily in the Tel Aviv and Gush Dan regions. This joint control entry provides Gafen immediate access to these additional projects without needing to develop them from scratch. As of the first half of the year, Wi-Box reported equity of approximately 424 million shekels and projected assets of 1.6 billion shekels by the end of 2025. The company has a pipeline of 44 projects with 5,429 units, of which 2,544 are Gafen's share. Wi-Box's core business is urban renewal, with 4,790 units in such projects, 1,905 belonging to Gafen. It also holds 50,000 square meters of income-generating real estate, including offices and hotels, and a residential portfolio of 639 units.

The transaction's completion is contingent on approval from the Antitrust Commissioner, which is required within 90 days of signing. Following this condition, the deal is expected to close within three business days. Gafen, which has been active in urban renewal since 2023 after Tzachi Abu acquired control, currently manages 33 projects with 15,500 units, including 3,000 with approved plans nearing construction permits. The company anticipates revenues of 2.5 billion shekels from projects slated for marketing in 2026-2027, with an estimated gross profit of 450 million shekels. This deal marks a significant scaling up of Gafen's operations and business structure, moving from an independent developer to a co-controlling entity of a public company with extensive real estate activities.