M. Aviv Acquires Tarchish, Enters Urban Renewal Partnership for $22 Million

Real estate company M. Aviv Industries and Construction is acquiring the entirety of Tarchish Promotion, Marketing, and Entrepreneurship, a firm specializing in urban renewal projects in collaboration with Ken HaTore Engineering and Construction. This deal will bring M. Aviv into a partnership encompassing 21 project companies, representing approximately 4,430 housing units.

M. Aviv will pay entrepreneur Tamir Hafez NIS 36.4 million for 100% of Tarchish's shares, with an additional conditional payment of up to NIS 20 million. This performance-based bonus is contingent on meeting specific project milestones, such as securing majority owner consent, obtaining zoning approvals, and advancing planning stages, with deadlines ranging from June 2028 to December 2030. Furthermore, M. Aviv will pay Ken HaTore approximately NIS 25 million for rights in some of the 21 project companies. Upon completion, 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 housing units for marketing. M. Aviv stated that most projects have already achieved the necessary owner majority or have approved zoning plans.

The total transaction value could reach approximately NIS 81.4 million, comprising up to NIS 56.4 million to Hafez (including the conditional payment) and NIS 25 million to Ken HaTore. M. Aviv, founded in 1973 and publicly traded since 1993, focuses on residential development and income-generating properties. The company will fund the acquisition from its own resources. The deal's finalization is subject to approvals from relevant property owners, the absence of significant adverse changes, and potential approval from the Antitrust Commissioner.