Orvani Investment Co., a real estate unit of Shufersal, has signed a land-for-housing agreement with Tidhar Group to develop a 5.61 dunam lot in Jerusalem’s Talpiot neighborhood.
Tidhar will build towers on the Talpiot lot
The development site sits at the corner of Pierre Koenig and Poalei Tzedek Streets, according to filing details. Most of the 5,610-square-meter property currently functions as a parking lot alongside an old commercial building. Late in 2024, planners advanced a proposal to clear the existing commercial structure to make way for new construction.
Under the agreement, Tidhar will construct a 30-floor tower and a 9-floor mixed-use building on the property. Shufersal reported in a Tel Aviv Stock Exchange filing that the tower will contain 240 apartments and 12,000 square meters of commercial space for rent. The same filing noted that the company expects a NIS 50 million pre-tax profit from the venture.
Did You Know? The development site at the corner of Pierre Koenig and Poalei Tzedek Streets currently functions mostly as a parking lot alongside an old commercial building.
Project plans increase total apartments while reducing rentals
Earlier planning documents allowed for the construction of 184 residential units and 80 rental apartments. However, Shufersal’s recent filing with the Tel Aviv Stock Exchange indicates that the project will include about 240 total apartments, with approximately 56 designated for rental. This shift marks a reduction in the total number of units intended specifically for rent.
The completed project will also feature 12,000 square meters allocated for commercial and office space. Under the combination agreement signed by Orvani and Tidhar, the subsidiary’s minimum share in the project is set at 38% for residential space. The agreement likewise establishes Orvani’s minimum share at 41% for commercial space and 35% for office space.
Tidhar may cancel the deal if profitability falls
The contract between Orvani and Tidhar includes specific safeguards regarding project viability. According to the filing details, the agreement contains a clause allowing Tidhar to cancel the deal under certain conditions. Specifically, Tidhar may trigger this cancellation if profitability falls below a specified threshold and Orvani refuses to reduce its established share in the project.
What is the Talpiot lot size and building plan?
What is the size of the Talpiot lot?
The lot covers 5.61 dunams, which equals 5,610 square meters, according to filings from Shufersal.
What buildings are planned for the site?
Tidhar Group will build a 30-floor tower and a 9-floor mixed-use building at the corner of Pierre Koenig and Poalei Tzedek Streets.
What is Shufersal’s expected profit from the project?
Shufersal reports that it expects a NIS 50 million pre-tax profit from the development.
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