The real estate company Sufrin Holdings, controlled by Leon and Tzachi Sufrin, reported on Sunday that a new urban renewal deal has been signed in central Rishon LeZion.
The project involves a hectare (approx. 2.5 acres) size area in the Rambam neighborhood, which the municipality has designated as a priority zone for urban renewal. The area, located between Rashi and Abarbanel Streets, includes the demolition of 11 old four-story buildings containing 121 residential units, along with three additional lots to be included in a combination deal.
In place of the old structures, three residential towers of about 30 floors will be built, alongside mid-rise buildings, commercial space, and public facilities, totaling approximately 550 new apartments. The project is being jointly promoted by the Sufrin Group and entrepreneur and businessman Daniel Rahmani, who initiated the plan over the past two years and has already secured the agreement of most of the residents in the area.
According to the company’s report to the stock exchange, the project is expected to generate revenues of around NIS 525 million ($156 m.), with an anticipated profit of approximately NIS 68 m. ($20 m.). The company expects that the zoning plan will be approved in the near future.
Ilan Shwartszorgen, CEO of the Sufrin Group, stated: “This is a strategic project in the heart of Rishon LeZion, combining planning certainty with a central location and making a meaningful contribution to urban renewal. This deal strengthens the urban renewal division of our company, in addition to other significant projects involving thousands of housing units in key cities across Israel.”
Shwartszorgen added that the potential for expansion in Israel's urban renewal sector is immense: “Most of the older buildings in the country are not adequately protected against earthquakes and do not provide sufficient security, as we have once again realized in recent weeks. We will continue to operate with a conservative approach, balancing independent initiatives with high-quality partnerships and selecting projects with a high likelihood of realization.”
The deal on behalf of Sufrin was led by Neta Lahav, the group's Deputy CEO and VP of Business Development. According to her, “This is another step in implementing our expansion strategy in leading cities, with a focus on areas with strong planning feasibility, while providing significant benefits to both residents and the overall urban environment.”
Sufrin Group was represented in the deal by attorney Avi Edri from the law firm Michael Edri Stekel & Co., and Daniel Rahmani was represented by attorney Yossi Shem Tov.