Electra Construction and Developer Clash Over Billion-Shekel Luxury Tower Dispute

Electra Construction, a subsidiary of Electra Group, and the "Beresheet Towers" development company, owned by the Kozenoff family, are embroiled in a major arbitration battle over the luxury "Beresheet" tower in Tel Aviv's Bavli neighborhood. The dispute centers on financial and contractual disagreements related to the construction of the 43-story, 174-unit skyscraper.

Electra Construction is demanding approximately 270 million shekels for its execution work, changes in plans, alternative return rates, and compensation for lost profits due to alleged delays caused by the developer. The company also cited external factors, including a fire in the building during construction, as impacting the project's timeline.

In response, "Beresheet Towers" is seeking between 900 million and 1 billion shekels, claiming Electra Construction failed to meet deadlines, causing delays in project completion and directly impacting apartment sales and other contractual obligations. The developer also noted that a significant portion of the damages claimed from Electra are already being sought in a separate lawsuit filed in July 2026 against the "Migdal" insurance company for approximately 480 million shekels.

The "Beresheet" tower project has faced numerous challenges since its inception, including public evacuation phases, excavation work starting in 2018, and a fire in early 2023 that severely delayed delivery. These delays have already led to lawsuits from apartment buyers claiming up to two-year delays in receiving their units, with initial occupancy originally planned for 2023 but only recently occurring.