Major Real Estate Project to Transform Tel Aviv Stock Exchange Complex

The Tel Aviv Stock Exchange (TASE) complex in Ramat Gan, long associated with the diamond industry and office towers, is set for a significant transformation. The large-scale Vertical City real estate project aims to convert part of the area into an urban hub integrating offices, residences, retail, rental housing, and student dormitories. This development is expected to alter the character of one of Israel's key business centers.

BST Group, controlled by the Tanous family, announced that its subsidiary, BST Construction, won the tender for the main contractor role in the project. The contract is valued at approximately NIS 1.12 billion, plus VAT. The total planned built area for the project is about 357,000 square meters, with the first phase, awarded to BST, encompassing roughly 236,000 square meters.

The primary impact will be shifting the TASE complex from a daytime business-focused zone to a 24/7 active urban center. The integration of residential and commercial spaces is anticipated to boost demand for services and strengthen the area's position as a hub for both employment and living.

The project is backed by three major players in the capital markets and real estate sectors: Israel Canada, holding 56% of the project; BSR Real Estate, with 20%; and Clal Insurance, holding 24%. Clal Insurance's involvement highlights the role of institutional investors in large, long-term real estate ventures.

This tender win is particularly significant for BST, which recently completed its initial public offering on the Tel Aviv Stock Exchange in June. The work order is expected in the coming months, with construction projected to last about 64 months, over five years. BST is controlled by the Tanous family, who own approximately 67.5% of its shares, with the Phoenix Group holding about 18% after a 2022 investment.