Ashdod Commercial Center to Become Residential Hub with 1,400 New Apartments
Translated & summarized from Calcalist by baba
The Southern District Planning and Building Commission has approved initial plans to redevelop the Star Center complex in Ashdod into a mixed-use urban district. The project, led by Tzachi Abu's Ari Real Estate, aims to add 1,400 residential units and public spaces, transforming the commercial center into a connected urban neighborhood.
The story in 5 lines · by baba
- Ashdod's Star Center complex approved for redevelopment into a mixed-use urban district.
- The plan includes 1,400 new residential apartments and 400 special housing units.
- The project aims to connect different neighborhoods and reduce car dependency.
- Ari Real Estate, owned by Tzachi Abu, is leading the development.
- A previous attempt by Ari Real Estate to acquire a stake in G City failed.
The Southern District Planning and Building Commission has granted initial planning approval to transform the Star Center complex in Ashdod into a mixed-use district featuring residential, commercial, and employment spaces. The plan, spearheaded by Tzachi Abu's Ari Real Estate, involves converting the existing shopping center into an urban quarter spanning 107 dunams. This significant planning stage allows the proposal to be deposited for public review, during which objections can be submitted before a final decision is made.
The proposed development includes 1,400 new apartments, with 600 of them being smaller units of 55 square meters. Additionally, 400 special housing units, such as student dormitories or sheltered housing, are planned. The construction will feature buildings ranging from seven to nine stories, alongside towers along Ben Gurion Boulevard and Weizmann Street. The project also allocates approximately 5,000 square meters for public buildings.
The commission stated the goal is to create a continuous urban district connecting different parts of Ashdod, moving away from the current car-dependent access to the commercial center. Star Center is a core asset for Ari Real Estate, which acquired full rights to the property. As of late 2025, the property was valued at approximately 1.27 billion shekels, with a 97% occupancy rate and generating 57 million shekels in net operating income that year.
Ari Real Estate, traded on the Tel Aviv Stock Exchange with a market value of about 2.3 billion shekels, has been actively seeking expansion. This includes a recently failed attempt to acquire a significant stake in G City. In July, Ari Real Estate agreed to purchase 26% of G City's shares from Norstar, owned by Chaim Katzman, for 661 million shekels. The deal was later expanded to include Yishpro-Tenport, owned by Kidan Dahari and Yaron Adib. However, the transaction was canceled in early August due to tensions with Katzman over changes in the buyer consortium. Ari Real Estate recovered its 20 million shekel deposit, and both parties dropped their claims.
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