Electra and Kozhinoff Family File Massive Claims Over Beresheet Tower

Electra Ltd. reported to the Tel Aviv Stock Exchange regarding a massive business and legal dispute surrounding the luxury "Beresheet" tower project in the Bavli neighborhood. Electra Building, a wholly-owned subsidiary, and Beresheet Towers Daniel Ltd., owned by the Kozhinoff family, filed mutual arbitration claims amounting to hundreds of millions of shekels.

Multi-Million Mutual Claims

According to the corporate filing, Electra Building's claim stands at approximately 270 million shekels. The lawsuit relates to demands for unpaid compensation for construction work executed, blueprint modifications, client-side delays, and compensation for alternative yields and lost profits. Electra also cited external factors that hindered progress, including the fallout from a major fire that broke out during construction.

Conversely, the developer (the Kozhinoff family) countersued for between 900 million and 1 billion shekels. The claim focuses on alleged construction delays affecting apartment sales and contractual deadlines. Electra noted that part of the developer's claim overlaps with a separate 480 million shekel lawsuit filed by the Kozhinoffs against the Migdal insurance company.

"At this preliminary stage, it is impossible to estimate the outcome of these mutual claims," Electra stated.

Construction Delays and Historical Hurdles

Rising 156 meters with 43 floors comprising 174 apartments, the Beresheet Tower has faced protracted complications since its inception. Built on land in Giv'at Amal B, excavation began in 2018 with original occupancy scheduled for the summer of 2023. A sequence of disruptions, notably a massive electrical fire on the upper floors in January 2023, severely delayed completion, leading to several buyer lawsuits over late deliveries. Despite these setbacks, the tower has recently begun gradual occupancy amid strong market demand and surging property values.