Carasso Real Estate is advancing a new project in the Kiryat Shalom neighborhood of Tel Aviv, in collaboration with the Tel Aviv-Jaffa Municipality and institutional financing from Ruby Capital and Menora Mivtachim, totaling approximately NIS 1.2 billion.
This urban renewal project is carried out in an unusual build-evacuate-rebuild model, centered around an alternative plot where the residents will move first, even before the existing buildings are demolished. The land that will be vacated will be transferred to the municipality, strengthening the unique cooperation between the private and public sectors.
The plan includes constructing 335 new housing units, commercial spaces, and a public building. Of all the apartments, 118 will serve the current residents of Opatoshu Street, while the remainder will be sold on the open market. Thanks to the alternative plot located about 500 meters from the existing buildings, it will be possible to first house the residents in the new apartments and only afterwards carry out evacuation and demolition, thus eliminating the need for temporary housing.
The financing deal includes a senior credit facility from Ruby Capital and a guarantees framework for buyers and landowners from Menora Mivtachim. Joanna Weisman, Head of Non-Traded Credit at Menora Mivtachim, noted:
"This deal joins a long line of complex financing transactions we have executed in construction financing, which is a central layer in Menora Mivtachim's investment strategy. The experience we have gained enables us to support giant projects led by dominant players in the field, such as Carasso Real Estate, and create significant value for the group's members."
Yaakov Nitzan, CEO and Partner at Ruby Capital, emphasized: "Kiryat Shalom neighborhood is undergoing a renewal boom. This is a large and complex project - and our experience of over a decade in supporting urban renewal initiatives allows us to provide synergistic responses, tailored solutions, and full and flexible financial support."
Ruby Capital currently accompanies projects totaling about 10,000 housing units in over 30 localities, with a debt volume of approximately NIS 25 billion. Meanwhile, its Sapir funds currently participate in projects including some 3,000 housing units and tens of thousands of square meters of logistics and commercial space.
Reuven Keider, CFO of Carasso Real Estate, added: "This is a complex and groundbreaking project. Carasso Real Estate is diversifying its sources of financing, and this is the first project funded by Ruby Capital. The company is in huge growth - we currently have about 16,000 housing units in planning and promotion, mostly within urban renewal frameworks.
In 2025, we expect to recognize a gross profit of over NIS 260 million from residential projects, rising to 330 million in 2026 and 540 million in 2027. Additionally, the company owns about 120,000 square meters of income-producing assets, generating about NIS 80 million NOI annually."
Attorney Assaf Englard, founding partner at Englard & Co., who provided legal guidance for the deal, concluded:
"When it comes to urban renewal, creativity knows no bounds. This project is an example of innovative ideas translated into reality through meticulous planning, smart partnerships, and professional work. We were happy to lead the financing consortium in all legal aspects of this complex process."