Elbit Secures Major Jerusalem Urban Renewal Project Worth 1.31 Billion NIS
Elbit secured a massive urban renewal project on Kadima Street in Jerusalem, projecting 1.31 billion NIS in revenues and aiming to build hundreds of new apartments.
Elbit has expanded its presence in the residential real estate sector by securing a major urban renewal project on Kadima Street in Jerusalem. The company, in partnership with Israel Klein, won a tenants' tender representing buildings numbered 11 through 45, securing a mandate from property owners to advance the initiative.
Project Scope and Financials
Under the proposed pinui-binui (evacuation-reconstruction) framework, the partnership plans to build approximately 585 new apartments, replacing the existing structures with 145 baseline units factored into initial agreements. Elbit holds a 50% stake in the venture. The project remains in its preliminary stages, pending the collection of the required 67% minimum tenant signatures, municipal planning approval, and financing arrangements.
Preliminary economic assessments project total revenues of around 1.31 billion NIS against expected costs of approximately 1.132 billion NIS, pointing to an estimated profit of nearly 180 million NIS. Elbit's direct share of the projected revenues stands at roughly 655 million NIS, with corresponding costs estimated at 566 million NIS. Initial pricing is calculated at 27,200 NIS per square meter, excluding VAT.
"Additional steps are required to advance and execute the project, including achieving the necessary majority of tenant signatures, obtaining a town-building plan approval, securing permits, and engaging with a financing entity," noted CEO Eran Mazor.
Capital Strengthening and Market Context
To support its broader real estate expansion, Elbit recently completed a series of capital-raising moves, including a share issuance in February 2026 totaling approximately 12 million NIS with excess demand, alongside corporate bond offerings to repay expensive legacy debt and fund projects such as the Afula development.
Company executives emphasized that cost projections remain estimates, susceptible to fluctuating commodity prices and security conditions. While official construction input indices have risen moderately, contractors report broader material cost spikes. Previously, Elbit secured a construction permit for an Afula project valued at 525 million NIS, featuring apartment allocations tied to Nvidia employees, with a projected gross profit of 101 million NIS.
