Shufersal and Tidhar Sign Deal for Talpiot Mixed-Use Real Estate Project
Shufersal signed a combination agreement with Tidhar Group to build a mixed-use real estate project in Jerusalem's Talpiot, expecting a 50 million shekel pre-tax profit.
Shufersal has signed a binding combination agreement with the Tidhar Group to develop a real estate project in the Talpiot neighborhood of Jerusalem. The deal comes eight months after the retail chain signed a non-binding memorandum of understanding with Tidhar to evaluate the venture.
According to Shufersal estimates, subject to obtaining a building permit for the project, its real estate subsidiary is expected to record a pre-tax profit of approximately 50 million shekels. The project will span a 5.6-dunam plot owned by Shufersal at the intersection of Pierre Koenig and Poalei Tzedek streets in Jerusalem.
Under the agreement, Tidhar will construct a mixed-use complex comprising residential units, commercial spaces, employment areas, public facilities, and affordable housing. The development will include approximately 240 housing units, of which 56 will be designated for rental, covering around 23,000 square meters for residential use and 12,000 square meters for commerce and employment.
Shufersal's minimum share in the completed project is set at 38% for residential space, 41% for commercial space, and 35% for employment areas. The agreement also includes a mechanism allowing the developer to cancel the deal if profitability falls below a minimum threshold, though Shufersal retains the right to adjust the combination terms to maintain the project.
