Israeli Real Estate Firm Faces Public Backlash Over Ties to Channel 14 Owner
On June 24 last year, the founders of Israeli real estate company Anshei HaIr, Ron Chen, Eran Hefetz, and Roy Dor, all former Air Force pilots, were preparing for their company's initial public offering (IPO) amid an optimistic atmosphere following a US-brokered ceasefire announcement between Israel and Iran. However, the mood shifted dramatically when a critical article by Galit Hami in Calcalist accused investing in Anshei HaIr of indirectly funding Yitzhak Mirilashvili, the controlling shareholder of Rotshtein, which owns 41% of Anshei HaIr and also owns Channel 14, a media outlet criticized for spreading misinformation.
The founders described feeling unfairly targeted, especially after Hefetz received the article notification immediately after a night reserve duty shift. They emphasized that their company’s values and operations are independent of Mirilashvili’s media interests. The connection began in 2018 when they sold a majority stake to Rotshtein, then controlled by Mirilashvili, whose media presence became controversial after Channel 20 rebranded as Channel 14 in 2021. Prior to that, social media campaigns and protests had already discouraged potential buyers from purchasing Anshei HaIr properties.
Despite initial strong demand during the IPO, Anshei HaIr’s stock price fell 6.5% on its first trading day and has since declined, with the company’s market value dropping from 251 million to 169 million shekels. Market analysts attribute the decline not only to political backlash but also to economic factors such as geographic restrictions limiting the company’s operations to Tel Aviv and nearby cities, a cooling housing market, and rising interest rates.
In response, the founders exercised their right of first refusal to buy back Rotshtein’s shares for 100 million shekels, aiming to sever the negative association and expand beyond Tel Aviv. Chen acknowledged that while they might not have made the deal today given the changed context, at the time it was a sound business decision facilitated by personal connections. The founders also highlighted their commitment to liberal values, community engagement, and maintaining independence from Mirilashvili’s influence despite some indirect pressure.
The article also details the founders’ deep personal and professional bond dating back to their Air Force days, their diverse business ventures, and their optimistic outlook for the future of Tel Aviv’s real estate market, contingent on political stability, regulatory reform, and interest rate reductions. They noted ongoing challenges in the housing market but remain confident in long-term demand for quality urban housing.
