Mediterranean Towers to Build $200M Senior Housing Complex in Givat Shmuel

Mediterranean Towers, a leading Israeli senior housing operator, will invest 700 million shekels to develop a senior living facility in Givat Shmuel. The project, awarded through a municipal tender, will include 350 housing units and is targeted primarily at the elderly religious community in Givat Shmuel and nearby Petah Tikva. The company aims to secure building permits within two years and complete construction within five years. The complex will also feature a nursing care department, approximately 3,500 square meters of commercial space, and 2,000 square meters of public areas for municipal use.

This new project adds to three other senior housing developments Mediterranean Towers is advancing, including a 470-unit facility in Neve Ayalon, Or Yehuda, currently under construction by Dania Sibbus, and two additional projects in planning stages in Ramat Aviv and Sde Dov, Tel Aviv. The Sde Dov project was won last March with a land rights payment of 447 million shekels and will include 300 units. In January 2025, the company began populating its eighth facility in Rehovot, increasing its total units under management to about 1,900.

Mediterranean Towers recently shifted nursing care management to external operators and now charges rent for both nursing and commercial spaces. The company also entered a partnership with Clal Insurance in January 2024 to invest 3.3 billion shekels in new senior housing projects, with Clal providing 60% of the equity. The Givat Shmuel project will not be part of this partnership, unlike the Sde Dov facility.

Chairman Moti Kirshenbaum expressed optimism about future demand, citing a 96% occupancy rate across the network and limited supply of senior housing units. Mediterranean Towers is Israel’s largest public company in this sector, with competitors including Beit BaKfar, Beit Hazahav, Azrieli, Shapir, Israel Canada, and Big.

Financially, Mediterranean Towers reported an 11% revenue increase in 2025 to 281 million shekels, driven by new deposits despite the Rehovot facility still ramping up. Adjusted operational cash flow doubled to 166 million shekels, and net profit attributable to shareholders rose 45% to 388 million shekels. In Q1 2026, revenues grew 10% to 73 million shekels, though adjusted cash flow declined due to lower new deposits. The company’s market value stands at 2.4 billion shekels, with its stock up 27% over the past year, outperforming some peers but underperforming the broader Tel Aviv 125 index.