BST Secures 1.12 Billion Shekel Tender for Ramat Gan's Vertical City Project

The Diamond Exchange district in Ramat Gan, historically dominated by offices and the diamond industry, is undergoing a massive transformation with the Vertical City real estate project. The development will turn part of the district into a mixed-use urban hub combining offices, residential housing, retail, rental apartments, and student dormitories.

BST Construction, a subsidiary of BST Group controlled by the Tanous family, has secured the main contractor tender for the project valued at approximately 1.12 billion shekels, plus VAT. The entire project spans about 357,000 square meters of planned built space, with the first phase won by BST accounting for roughly 236,000 square meters.

The initiative aims to convert the business district from a daytime-only commercial zone into a vibrant 24/7 urban center. The integration of residential and commercial spaces is expected to boost local demand and reinforce the area's economic status.

The project is backed by three major market players: Israel Canada holding 56%, B.S.R. Real Estate with 20%, and Clal Insurance holding 24%. The involvement of Clal Insurance highlights the active role of institutional bodies in large-scale, long-term real estate investments.

For BST, which completed its initial public offering on the Tel Aviv Stock Exchange last June, this contract win is a major milestone. Work permits are expected in the coming months, with construction slated to take approximately 64 hours--correction, 64 months—spanning over five years.

BST is controlled by the Tanous family, holding about 67.5% of its shares, while Phoenix Group holds roughly 18% following an investment in 2022.