M. Aviv Acquires Urban Renewal Portfolio for $16 Million

Real estate company M. Aviv has signed a binding agreement to acquire all shares of Tarshish Kidum Shiuuk Yizumot from entrepreneur Tamir Hafez, significantly expanding its urban renewal operations. Tarshish holds project companies in partnership with Ken HaTor and is advancing projects comprising approximately 4,430 housing units.

M. Aviv will pay Hafez up to NIS 56.4 million (approximately $16 million). This includes a base payment of around NIS 36.4 million and a conditional payment of up to NIS 20 million, contingent on meeting specific project milestones. These milestones, due between June 2028 and December 2030, involve securing the required majority from apartment owners, obtaining zoning plan approvals, and progressing through planning stages.

Additionally, M. Aviv will pay Ken HaTor approximately NIS 25 million for rights in some of the 21 project companies. Following this transaction, Tarshish and Ken HaTor will each hold a 50% stake in their combined project interests. Tarshish's expected share in the projects upon deal completion is about 1,100 housing units for marketing.

The projects are located in cities including Herzliya, Petah Tikva, Ramat Gan, Tel Aviv, and Jerusalem. M. Aviv stated that most projects have already secured the necessary majority from homeowners or have approved zoning plans. One project is expected to move towards execution within the next year.

Tamir Hafez, who established Ken HaTor's urban renewal division 15 years ago, will continue working with M. Aviv and Ken HaTor to advance these projects for two years post-deal completion. He will also remain a partner in other ongoing and planned projects. M. Aviv CEO Tzala Rosenblum-Amor highlighted the partnership's ability to build critical mass in urban renewal by combining Ken HaTor's experience with M. Aviv's entrepreneurial and execution capabilities.

Hafez stated he is selling to dedicate more time to his social initiative "Chai Chazak," which assists young adults, discharged soldiers, and reservists. He will remain involved with Ken HaTor and will assist M. Aviv with their entry into these projects. Ken HaTor Chairman Yoav Ken HaTor expressed confidence that the partnership with M. Aviv will advance the portfolio, while Ken HaTor continues its broader urban renewal activities. The deal, funded by M. Aviv's own resources, is subject to conditions including owner consent, no material adverse changes, and potential antitrust approval.