BST Group Wins NIS 1.12 Billion Contract for Vertical City Project
Translated & summarized from Bizportal by baba
BST Group's subsidiary, BST Building, secured a NIS 1.12 billion contract to serve as the main contractor for the first phase of the Vertical City project in Ramat Gan. The project, developed by Vertical City, will feature mixed-use spaces including offices, retail, and residential units. Construction is expected to take over five years, with work commencing in a few months. This significant contract adds to BST's growing portfolio of major projects.
The story in 6 lines · by baba
- BST Group won a NIS 1.12 billion contract for the first phase of the Vertical City project in Ramat Gan.
- The contract involves BST Building serving as the main contractor for the mixed-use development.
- Phase one of the Vertical City project includes approximately 236,000 square meters of built area.
- Completion of phase one is expected over five years after work commences.
- The project is being developed by Vertical City, a partnership including Israel Canada and Clal Insurance.
- BST Group reported a NIS 6.2 billion order backlog prior to this new contract.
BST Group, through its wholly-owned subsidiary BST Building, has been awarded the main contractor tender for the first phase of the Vertical City project in the Ramat Gan Stock Exchange complex. The contract is valued at approximately NIS 1.12 billion, plus VAT. Vertical City, the project's developer, is owned by Israel Canada (56%), Clal Insurance (24%), and BSR Real Estate (20%).
Phase one encompasses roughly 236,000 square meters of built area, part of a larger project totaling about 357,000 square meters. This mixed-use development will include offices, retail spaces, apartments, rental housing, and student dormitories in an area that has become a major high-rise construction hub in Israel over the past decade. Despite the construction activity, apartment sales in the Stock Exchange complex have remained relatively slow in the past year.
The notice to commence work is expected within a few months, with phase one construction to be delivered in stages. Completion is anticipated approximately 64 months after the commencement notice, meaning over five years. Vaxman, Geva, Govrin will manage the project for the developers.
The contract is largely a fixed-price agreement, tied to the construction input index. While this structure protects the contractor from rising material and labor costs over the long term, the fixed-price nature places significant risk on BST for cost and schedule overruns. Elias Tanoos, CEO of BST Group, stated that projects of Vertical City's scale shape urban landscapes for years to come and expressed pride in BST's partnership with leading developers. Summer Kardoush, CEO of BST Building, highlighted the project's immense scale and the engineering and execution challenges involved.
This win adds to BST's recent portfolio of large projects, including a NIS 420 million contract for the northern hospitalization tower at Ichilov Hospital earlier this year. The company reported an order backlog of NIS 6.2 billion in its second-quarter reports, a 17% increase, making this current deal equivalent to about one-fifth of that previously reported backlog. BST is a real estate group controlled by the Tanous family, with over 50 years of experience in development, execution, and investment in Israel and abroad.
Mentioned
The same event, reported separately by each outlet. Open a few to compare what different newsrooms emphasize — and what they leave out.
Other 3
Not the same event — other stories that share this one’s people, places, or theme: background, reactions, and follow-ups.
