Gary Barnett's Jerusalem Land Deal Faces Legal Challenge
Translated & summarized from Calcalist by baba
The story in 5 lines · by baba
- Greek Church confirms understanding of KKL lease extensions to Supreme Court.
- Gary Barnett's 750 million shekel land deal in Jerusalem is now at risk.
- The land is subject to long-term leases held by the Jewish National Fund (KKL).
- Leases on the 520 dunams are set to expire between 2051 and 2052.
- The land hosts hundreds of apartments and major public institutions.
A dramatic response submitted by the Greek Orthodox Church to Israel's Supreme Court has complicated a major land deal by investor Gary Barnett. In 2023, Barnett's group purchased 520 dunams (approximately 128 acres) in Jerusalem for 750 million shekels. The land was previously leased by the Church to the Jewish National Fund (JNF), or KKL, on which hundreds of apartments and dozens of significant structures have been built.
The Church's filing confirms for the first time that it was understood KKL would extend its lease agreements, as previously stated. These agreements grant KKL extensive rights, nearly equivalent to ownership, for an annual payment of $30,000. The Church's statement was made in response to a petition filed in July 2025 by a group of residents concerned about the leases expiring between 2051 and 2052. Uncertainty over land ownership has already caused apartment values to drop significantly.
This declaration is crucial because the Church had sold its ownership of the plots to developers. Barnett's group acquired the land from a previous buyer, Nitsot Komemiot, in 2023, inheriting the lease agreement with KKL. The Church's response indicates that the new owners must allow KKL to extend the lease, likely at a modest cost, potentially jeopardizing Barnett's substantial investment.
The disputed land hosts numerous buildings, including 900 apartments and three luxury hotels (Inbal, Prima Royal, and Dan Panorama). It also contains important public institutions such as the Khan Theater, the Great Synagogue, the Begin Heritage Center, parts of the Israel Museum, the Israel Democracy Institute, and the Schechter Institute.
The original leases were signed between the Greek Church and KKL in 1951-1952, following initial land purchases by Nitsot Komemiot in two phases, the last in 2016 for approximately 114 million shekels. The Church's response included a letter from KKL dated January 2023, before Barnett's purchase, clarifying that the land had existing KKL lease rights and extension options. The Church stated, "The Respondent 3 (the Church) had no doubt that the Jewish National Fund would exercise the option and extend the lease agreements as it declared it would, including most recently."
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