Anashim Ha'Ir Reports Profit Surge in Q2 Following Menarav Deal and Project Progress
Anashim Ha'Ir, an urban renewal company led by former Air Force pilots Ron Chen (CEO), Eran Hefetz, and Roy Dor, posted a significant turnaround in its second-quarter results, moving from a loss in the same period last year to a profit. This improvement comes ahead of a transaction in which the founders will buy out the stake held by construction partner Rotshtein, which currently owns 41.3% of the company. The deal values Anashim Ha'Ir between 240 million and 255 million shekels, with a base price of 99 million shekels plus a potential 6 million shekels in additional payments.
A key factor in the quarter's performance was a May agreement with Menarav, under which Menarav acquired 49% of the rights to a project on La Guardia Street in South Tel Aviv, involving 420 housing units, 300 of which are for the open market. Menarav paid 32 million shekels and received 49% of Anashim Ha'Ir's rights in two projects on Ibn Gabirol Street in Tel Aviv. This deal generated 37.6 million shekels in revenue for Anashim Ha'Ir in Q2.
Overall revenues for the quarter reached 110 million shekels, a 2.6-fold increase from the previous year, driven by a 63% rise in apartment sales to 51.4 million shekels and an 86% increase in construction service revenues to 20.5 million shekels. Operating profit totaled 41.5 million shekels, reversing a 1.9 million shekel loss, and net profit was 28.1 million shekels compared to a 4.4 million shekel loss in Q2 2025. The company’s half-year revenues doubled to 155 million shekels, with a net profit of 23.9 million shekels versus a loss of 7.2 million shekels.
Anashim Ha'Ir is involved in 55 projects at various stages, mostly in Tel Aviv, with 3,156 apartments for sale or already sold. Despite the positive financial results, the Tel Aviv housing market remains weak, as evidenced by a promotional campaign launched in February offering a lottery for a free apartment, which sold only 13 units even after an extension. Rising construction costs have forced the company to lower gross profit margins in several projects, including reductions from 13% to 8% and from 21% to 15% in key developments.
The company went public in June 2025 with a valuation of 251 million shekels, but its stock has since dropped 38%, trading now at a market cap of 155 million shekels, underperforming the Tel Aviv construction index, which fell 14%.
