Shufersal and Tidhar Sign Jerusalem Real Estate Deal for 240 Apartments
Translated & summarized from Calcalist by baba
Retailer Shufersal and the Tidhar Group have signed a real estate deal in Jerusalem's Talpiot neighborhood to build approximately 240 housing units and commercial space. Shufersal expects to profit around NIS 50 million before tax from the project. The development includes residential, commercial, employment, and affordable housing components. The agreement details profit-sharing and cancellation clauses based on developer profitability.
The story in 5 lines · by baba
- Shufersal and Tidhar signed a real estate deal in Jerusalem's Talpiot neighborhood.
- The project will include approximately 240 housing units and commercial space.
- Shufersal anticipates a pre-tax profit of about NIS 50 million from the development.
- The deal involves a mixed-use project with residential, commercial, and affordable housing.
- The agreement includes profit-sharing and cancellation clauses based on developer profitability.
Retail giant Shufersal has finalized a combination deal with the Tidhar Group for a significant real estate project in Jerusalem's Talpiot neighborhood. The agreement follows an initial non-binding memorandum of understanding signed eight months prior. Shufersal anticipates its real estate arm will recognize a pre-tax profit of approximately NIS 50 million upon receiving building permits for the project.
The development will take place on a 5.6-dunam (approximately 1.4 acres) plot owned by Shufersal at the intersection of Pierre Koenig and Poalei Tzedek streets. Tidhar will construct a mixed-use project on the site, including residential units, commercial spaces, and employment areas, alongside affordable housing, in accordance with the local zoning plan and detailed designs to be agreed upon by both parties. The construction will be carried out by a Tidhar Group subsidiary.
The project is slated to include around 240 housing units, with approximately 56 designated for rent. It will also feature about 23,000 square meters of residential space and 12,000 square meters for commerce and employment. Under the agreement, Tidhar will receive a portion of the rights to the land and the built areas. The division of these will be determined by an appraiser's valuation of all units and spaces, factoring in the developer's costs and an agreed-upon profit margin. Shufersal's share is stipulated to be no less than 38% for residential, 41% for commercial, and 35% for employment areas.
The contract includes a clause allowing Tidhar to cancel the deal if its profit margin falls below a specified minimum. However, Shufersal has the right to adjust the minimum combination ratio to meet the developer's profitability threshold, preventing cancellation. Additionally, the agreement outlines a profit-sharing mechanism for any surplus profits generated by the developer exceeding the agreed-upon rate, in which Shufersal will participate.