Geshem Holdings to Develop 488 Apartments in Migdal HaEmek on Land Returned by Kibbutz Kfar HaHoresh
Geshem Holdings has signed an agreement with Kibbutz Kfar HaHoresh in the Lower Galilee to advance a residential project in the western neighborhood of Migdal HaEmek. Under the deal, Geshem will acquire rights to purchase approximately 46 dunams of land from the Israel Land Authority (ILA) without a tender, enabling the construction of 488 housing units for the open market. The land was returned to the ILA by Kibbutz Kfar HaHoresh, which retained rights to develop 34 apartments valued at about 46 million shekels for its own use.
Kfar HaHoresh, founded in 1933 and part of the Jezreel Valley Regional Council, selected Geshem as its development partner after reviewing several proposals. The kibbutz was represented by lawyers Dor Avineri, Maor Zilka, and Or Nevo from Lipa & Co., while Geshem was represented by Benny Lev Koren and Roy Shoshani from Lev Koren, Shoshani, Zini Ben Naim law firm. Geshem is already advancing the "HaHoresh" project in Migdal HaEmek's Shkediot neighborhood, which includes 410 housing units in two phases, with a building permit granted for the first 205 units. This new agreement could increase Geshem's total housing units in Migdal HaEmek to around 900.
Separately, the Israel Land Authority has launched a reform to shorten the appeals process for land valuation disputes, aiming to reduce the average handling time from over two and a half years to under a year by consolidating appeal stages and improving case management through dedicated IT systems. This reform was developed in cooperation with the government appraiser at the Ministry of Justice.
In related real estate news, Azorim Living, a REIT fund, announced the purchase of 26 apartments from Azorim in the Arnona neighborhood of Jerusalem for approximately 76 million shekels. These units, ranging from three to five rooms, are intended for long-term rental of at least ten years, with expected annual rental income of about 2.4 million shekels. The transaction is expected to close by November 2024. This deal is part of a broader trend of residential REITs acquiring unsold apartments from developers to capitalize on rental demand.
