Israeli Investors Sue Greek Orthodox Patriarchate Over Dual Land Sales in Jerusalem
Israeli investors have filed a lawsuit against the Greek Orthodox Patriarchate in the Jerusalem District Court, accusing it of double-selling a valuable 5-dunam plot on Emil Botta Street near the King David Hotel and the French Embassy in West Jerusalem. The investors claim they signed an agreement in 1999 to receive about 1,000 square meters of built property, roughly equivalent to 10 residential apartments, in exchange for a payment of around one million dollars. Over the years, the Patriarchate signed two separate development agreements with different companies, Avital Properties and Nof Tzmarot, both of which were canceled. The investors did not finalize registration of warning notes on the land parcels due to ongoing parcel unification processes, but recently encountered refusal when attempting to complete registration.
Upon learning of a new sale, the investors, represented by attorney Yehuda Talmon, sought an injunction to block the transaction. The Patriarchate responded, revealing the land had been sold again to a company registered in the Channel Islands. The church claims the investors’ rights were contingent on the success of the earlier development agreements, which were canceled due to failure to change land designation and investor refusal, thus nullifying their claims. The Patriarchate also alleges the investors were aware of these issues for a decade and are now acting in bad faith.
The church disclosed that after canceling a 2013 agreement with Bona, a company registered in the Virgin Islands, it sold the entire land in 2021 to Pierro Real Estate Holdings Limited for 4.5 million shekels, a low price given the location. The Patriarchate argues the land is designated green space, restricting construction, and that the investors knew about the new sale and are attempting to undermine it deliberately. The use of offshore companies obscures ownership details, though the foreign buyer is represented by an attorney who also represents the Patriarchate in other real estate matters.
The Greek Orthodox Patriarchate owns extensive land in Jerusalem, reportedly nearly 40% of East Jerusalem’s land, much acquired in the 19th century. In recent decades, it has pursued sales and development deals to increase church revenues, some surrounded by controversy and allegations of misconduct, including a scandal involving land in Jaffa and disputes over lease agreements in West Jerusalem neighborhoods like Rehavia and Talbiya. These disputes have raised concerns about potential eviction of Israeli residents, though negotiations continue to allow tenants to remain.
This case highlights ongoing tensions over land ownership and development rights in Jerusalem, involving historic church holdings, investor agreements, and complex legal and planning challenges.
