Ashdod Star Center to Transform into Mixed-Use Urban District Under Ari Real Estate Plan
Ashdod's Star Center commercial complex received initial planning approval to transform into a mixed-use urban district featuring 1,400 apartments and public spaces, backed by Ari Real Estate.
The Southern District Planning and Building Committee has granted initial approval to deposit a sweeping urban renewal plan for the Star Center complex in Ashdod. Spearheaded by Ari Real Estate, controlled by Tzahi Abu with a 52.8% stake, the project aims to transform the sprawling 107-dunam commercial hub into a mixed-use urban district.
Project Details and Housing
The ambitious blueprint proposes replacing the car-centric commercial center with a continuous urban quarter connecting various neighborhoods in Ashdod. Plans include the construction of 1,400 residential apartments alongside 400 specialized housing units, such as student dormitories or assisted living facilities. Notably, 600 of the planned apartments will be compact units measuring 55 square meters. The development will feature buildings ranging from 7 to 9 stories high, complemented by high-rise towers along Ben Gurion Boulevard and Weizmann Street, as well as approximately 5,000 square meters allocated for public buildings.
While this marks a significant milestone in the planning process, the plan still requires final approval following a public consultation period where objections can be submitted.
Financial Standing and Valuation
Star Center remains one of the core assets of Ari Real Estate, which holds full rights to the property after acquiring the remaining stake from Phoenix in 2022. According to the company's financial report, the fair value of the asset stood at approximately ₪1.27 billion at the end of 2025, boasting a 97% occupancy rate and generating a net operating income (NOI) of ₪57 million for the year.
Ari Real Estate is publicly traded on the Tel Aviv Stock Exchange with a market capitalization of roughly ₪2.3 billion, following a 68% surge in its share price over the past 12 months. The fair value of the Star Center alone accounts for more than half of the company's total market value.
Tzahi Abu continues to pursue aggressive expansion strategies, highlighted by a recent attempt to acquire a stake in G City before the deal fell through due to disagreements over the consortium's composition.
