M. Aviv Acquires Tarchish, Enters Partnership for 4,430 Housing Units

Real estate company M. Aviv Construction Industries is acquiring the entirety of Tarchish Marketing Promotion and Entrepreneurship for approximately 81.4 million shekels. Tarchish specializes in urban renewal projects and operates in partnership with Ken HaTore Engineering and Building. This acquisition will bring M. Aviv into a partnership encompassing 21 project companies, which collectively manage approximately 4,430 housing units.

The deal involves an initial payment of 36.4 million shekels to Tarchish's developer, Tamir Chafetz, with an additional conditional payment of up to 20 million shekels. This additional sum is contingent upon meeting specific project milestones, such as securing the required majority of rights holders, obtaining urban building plan approvals, and achieving planning progress, with deadlines ranging from June 2028 to December 2030. M. Aviv will also pay Ken HaTore approximately 25 million shekels for rights in some of the 21 project companies. Following the transaction, Tarchish and Ken HaTore will each hold a 50% stake in their respective project companies.

The projects are located in Herzliya, Petah Tikva, Ramat Gan, Tel Aviv, and Jerusalem. Tarchish's share of the portfolio is expected to include around 1,100 units for marketing. M. Aviv stated that most of these projects have already reached the stage of securing the necessary majority of owners or have an approved urban building plan.

M. Aviv, founded in 1973 and publicly traded since 1993, focuses on initiating, planning, and constructing residential projects in Israel, alongside income-generating real estate activities. The company will finance the acquisition from its own resources.