Battle of giants in Tel Aviv: The state claims 1,300 apartments and tens of millions
The State Attorney's Office demands that the court return 1,314 apartments in the heart of Tel Aviv to its possession and compel the Halamish company to refund approximately 51 million shekels: "They registered the assets in their name without consent and conducted negotiations with developers."
The State Attorney's Office has filed a lawsuit in the Tel Aviv District Court on behalf of the Ministry of Construction and Housing against Halamish, a government-municipal company responsible for housing, rehabilitation, and urban renewal in Tel Aviv-Yafo. The state is seeking a declaration of ownership over approximately 1,314 apartments intended for public housing and is demanding that Halamish return tens of millions of shekels allegedly held unlawfully.
Public housing in Israel is a limited resource intended for those unable to afford private market rates. It is managed by the Ministry of Construction and Housing through companies entrusted with maintaining assets for the benefit of eligible citizens, in alignment with ministry policy.
The lawsuit, filed by Adv. Adi Ron and Adv. Rotem Alkalai of the State Attorney's Office, along with legal counsel from Schnitzer Gottlieb & Co., concerns "investment properties" built or financed by the state between 1961 and the early 1980s.
According to the claim, the state provided approximately 99% of the capital for these properties. However, for historical and technical reasons, they were registered under Halamish, a company jointly owned by the state and the Tel Aviv Municipality. The state maintains that Halamish has historically served only as an executive arm of the ministry, holding the apartments in trust rather than as the rightful owner.
The claim alleges that in recent years, Halamish unilaterally shifted its stance to claim ownership. It is accused of registering assets in its own name at the Land Registry without state consent, obstructing the registration of new urban renewal units in the state's name, and negotiating with developers without authorization. Furthermore, Halamish reportedly sold public housing units and withheld the proceeds from the state.
Despite explicit agreements, the state asserts that Halamish continued to register rights in its own name and failed to transfer funds. The lawsuit claims Halamish unlawfully retained approximately 50.8 million NIS beyond its entitled share of profits from sales to tenants.
The state is requesting the court to declare its ownership, cancel registrations made in favor of Halamish, and prohibit the company from acting as an owner without authorization. It also seeks the return of withheld funds, compensation for assets sold to third parties without approval, and a ruling that Halamish breached its management obligations.
