Barzani Group Joins Electra in 600 Million Shekel Housing Project in Elad
The Barzani Group has acquired a 50% stake in a residential development project led by Electra Residential in the ultra-Orthodox city of Elad, marking the first collaboration between the two companies. Together, they will build 234 housing units and approximately 1,800 square meters of commercial space in Elad's new neighborhood, Tamal 1081. Electra Residential purchased the land from the Israel Land Authority through a "Price Target" tender in 2023, paying around 143 million shekels including development costs. Although the exact terms of Barzani's entry were not disclosed, the price is expected to be close to the original purchase price due to stable land prices over the past two years.
About 80% of the apartments will be marketed under the "Price Target" program, with the remainder sold on the open market. Barzani's experience in Elad was a key factor in the partnership, as this is Electra's first project in the city while Barzani is undertaking its fourth. The development will feature seven residential buildings of 7 to 8 stories, offering 2- to 6-room apartments, garden apartments, and penthouses, all with sukkah balconies. The project is expected to generate sales of approximately 600 million shekels and will commence construction immediately. It is located on the westernmost plot of the new neighborhood, near Givat Koach forest and open spaces, with architectural planning by Itzkin Architects.
Oren Hochberg, CEO of Electra Residential, stated that the partnership aligns with their strategy to expand in high-demand and rapidly growing cities like Elad, which has strong housing demand and extensive construction activity. Eric Gilad, CEO of Barzani Group's development and income-producing assets, emphasized their confidence in Elad's growth potential, citing excellent transportation access and ongoing urban development. He noted that this project is another step in Barzani's continued expansion and commitment to Elad's development.