M. Aviv Acquires Urban Renewal Firm Tarhish in Deal Worth Up to 81.4 Million NIS
M. Aviv Building Industries is acquiring 100% of urban renewal firm Tarhish for up to 56.4 million NIS and partnering with Ken HaTor in a 21-project deal worth up to 81.4 million NIS total.
The real estate company M. Aviv Building Industries is acquiring 100% of the shares of "Tarok" (Tarhish) Promotion, Marketing and Entrepreneurship, which specializes in urban renewal projects in partnership with "Ken HaTor" Engineering and Building. As part of the deal, M. Aviv will enter into a partnership across a portfolio of 21 project companies, including approximately 4,430 residential units.
Transaction Details and Conditional Payments
For 100% of Tarhish shares, M. Aviv will pay entrepreneur Tamir Hefetz 36.4 million NIS, alongside a conditional payment of up to an additional 20 million NIS. The additional consideration will be paid subject to meeting defined targets for certain projects, including securing the required majority of property rights holders, zoning approvals (TABA), and planning progress. Target dates for these conditions range between June 2028 and December 2030.
In addition, M. Aviv will pay Ken HaTor approximately 25 million NIS to acquire rights in parts of the 21 project companies. Following the completion of the transaction, Tarhish and Ken HaTor will each hold 50% of their total combined stake in the relevant project companies.
"The acquisition significantly expands our footprint in urban renewal, bringing high-potential projects into our core portfolio across major metropolitan areas," noted market analysts following the announcement.
Project Locations and Financial Scope
The projects are located in Herzliya, Petah Tikva, Ramat Gan, Tel Aviv, and Jerusalem. Tarhish's share of the portfolio is expected to reach approximately 1,100 residential units for marketing. According to M. Aviv, most projects are already at a stage where the required majority has been secured and/or an approved town building scheme exists.
In total, payments under the transaction could reach approximately 81.4 million NIS: up to 56.4 million NIS to Hefetz, including conditional payments, and approximately 25 million NIS to Ken HaTor. M. Aviv Building Industries, founded in 1973 by Mordechai Aviv, has been traded on the Tel Aviv Stock Exchange since 1993 and operates in residential development and income-producing real estate.
