Aviv Construction Acquires Real Estate Firm in $15 Million Deal

Aviv Construction has signed a binding agreement to acquire Tarchshish Kidum Shivuk Yizum Be'al Korcha, a real estate company owned by Tamir Hefetz. The acquired company specializes in urban renewal projects and, in partnership with Ken HaTor, manages a portfolio of approximately 4,430 housing units across high-demand areas in central Israel, including Tel Aviv, Jerusalem, Herzliya, Ramat Gan, and Petah Tikva. Upon completion of the deal, Aviv Construction will be entitled to market about 1,100 of these units.

Most of the projects in Tarchshish's portfolio have already secured the necessary tenant approvals or have approved urban building plans. At least one project is in advanced stages and expected to begin construction within the next year.

The total transaction value is approximately NIS 56.5 million (around $15 million USD). This includes a base payment of NIS 36.4 million and an additional conditional payment of up to NIS 20 million, contingent on meeting specific project targets. Aviv Construction will also pay NIS 25 million to Ken HaTor for rights in 21 project companies, after which Tarchshish and Ken HaTor will each hold a 50% stake in these companies.

Furthermore, Aviv Construction has committed to arranging up to NIS 20 million in credit to cover Ken HaTor's equity contribution for the projects' bank financing. Following the deal's closure, management, ownership, execution, and promotion of the projects will be shared equally between Tarchshish and Ken HaTor. Both companies will have the right to compete for construction work on these projects. Tamir Hefetz will continue to collaborate with both companies on project advancement for two years post-completion. The deal awaits approval from the Antitrust Commissioner.