Amidst global economic shifts, Tel Aviv’s real estate sector demonstrates remarkable resilience and ambition. Bareket has solidified its role as a key financial pillar by approving over half a billion shekels in bridging loans, propelling a massive urban renewal initiative led by the Hagag Group in the prestigious Ramat Aviv neighborhood. This move not only underscores investor confidence but also signals a continued boom in Israel’s construction landscape.
The Blueprint for Growth
- Massive Capital Injection: Bareket is providing approximately 540 million NIS in credit to kickstart a project valued at 4 billion NIS.
- Urban Transformation: The plan includes six residential towers adding 515 units to the strategic Einstein Street axis.
- Strategic Partnership: The deal supports 239 land rights holders organized under the Hagag Group umbrella.
- Comprehensive Living: Development includes substantial commercial space, public buildings, and extensive underground parking.
Structuring a Billion-Shekel Vision
The financial architecture behind this development highlights the sophistication and liquidity of Israel’s non-banking credit sector. By securing two distinct bridging loan agreements, Bareket is enabling immediate progress on groundwork and regulatory payments, ensuring that delays are minimized for hundreds of private stakeholders.
Bareket, under the leadership of CEO Adi Gazit and controlled by Roni Biram and Gil Deutsch, has committed approximately 540 million NIS to two separate landowner groups. These groups, organizing under the Hagag Group leadership, represent 239 individual rights holders. This capital injection is specifically designated to cover “betterment levies” (taxes on land value increase), municipal fees, and the critical initial stages of excavation and shoring. The total estimated value of the completed complex stands at a staggering 4 billion NIS, signaling strong long-term confidence in Tel Aviv’s premium housing market.
How Will Einstein Street Be Transformed?
Ramat Aviv is already one of Tel Aviv’s most desirable addresses, but this project aims to redefine its northern axis along Einstein Street. The plan moves beyond simple housing to create a fully integrated mixed-use environment designed by top-tier architects, ensuring the neighborhood evolves to meet modern standards of living.
The blueprint calls for the construction of six residential buildings containing 515 housing units. Beyond living space, the project integrates 11,400 square meters of commercial space and a 3,950-square-meter public building, ensuring the community is self-sustaining. To address urban density, a massive underground facility will provide 957 parking spaces. The design is helmed by Moshe Tzur Architects, a firm renowned for shaping Israel’s modern aesthetic, while legal representation for the transaction was handled by Adv. Eran Mizrahi of Epstein Rosenblum Maoz (ERM).
A Continuity of Development
This transaction is not an isolated event but part of a broader strategy to develop high-value land reserves across the city. It mirrors recent large-scale movements in adjacent luxury districts, reinforcing the stability and attractiveness of local real estate assets even during complex times.
Adi Gazit, Bareket’s CEO, emphasized the company’s decade-long commitment to financing iconic projects from Kikar HaMedina to Sde Dov. Indeed, this Ramat Aviv deal follows closely on the heels of another massive financing agreement for Sde Dov (Plot 105). In that separate venture, Bareket, alongside insurance giants Migdal and Menora, extended a 1.15 billion NIS credit line to support the construction of hundreds of residential and hotel units. This pattern of high-volume lending underscores a robust appetite for development in Israel’s economic capital.
| Feature | Ramat Aviv Project (Current) | Sde Dov Plot 105 (Recent) |
|---|---|---|
| Financing Volume | ~540 Million NIS | ~1.15 Billion NIS |
| Development Scope | 515 Residential Units | 372 Residential + 66 Hotel Units |
| Commercial Space | 11,400 sq. meters | Mixed Commercial/Hotel |
| Developer/Partner | Hagag Group | Various Rights Holders |
| Location | Einstein St., Ramat Aviv | Sde Dov Coastal Quarter |
Project Milestones to Watch
- Groundbreaking Operations: Monitor the immediate commencement of excavation and shoring works funded by the new credit line.
- Regulatory Clearance: Track the finalization of betterment levy payments to the municipality, which clears the path for vertical construction.
- Commercial Launch: Watch for upcoming marketing announcements regarding the 515 new residential units and commercial leasing opportunities.
Glossary
- Bridging Loan: A short-term loan used until a person or company secures permanent financing or removes an existing obligation.
- Betterment Levy (Hitel Hashbaha): A tax paid to the local committee for planning and building when a property’s value increases due to the approval of a plan or relief.
- Shoring: The process of supporting a building, vessel, structure, or trench with shores (props) when in danger of collapse or during repairs/alterations.
- Rights Holders: Individuals or entities who own specific legal rights to a plot of land, often pooling together for large-scale development projects.
Methodology
This report is based on financial disclosures and press statements released on January 20, 2026, regarding Bareket’s financing agreements. Data concerning project scope, loan amounts, and architectural details were derived directly from the company’s announcements regarding the Einstein Street development.
Frequently Asked Questions
Who is providing the financing for this project?
Bareket, a leading real estate credit company controlled by Roni Biram, Gil Deutsch, and Adi Gazit, is providing the financing. They have signed agreements to provide credit frameworks totaling roughly 540 million NIS.
What is the role of the Hagag Group in this deal?
The Hagag Group is leading the organization of the landowners. They are managing two groups of landowners—comprising 239 rights holders—who own the land on Einstein Street where the project will be built.
What will the new development include?
The project is set to feature six residential buildings with 515 apartments. Additionally, it will include a large commercial center (11,400 sqm), a public building (3,950 sqm), and a nearly 1,000-space underground parking lot.
How does this compare to other recent Bareket projects?
This deal is consistent with Bareket’s strategy of funding high-profile developments. Recently, they also closed a massive 1.15 billion NIS financing deal for a project in Sde Dov, Tel Aviv, further cementing their influence on the city’s skyline.
Building the Future
As cranes continue to rise over Tel Aviv, this deal serves as a testament to the vitality of the Israeli economy. The collaboration between top-tier financiers like Bareket and developers like Hagag Group ensures that Israel’s urban centers continue to evolve, modernize, and thrive.
Key Takeaways
- Financial Strength: Bareket continues to deploy massive capital, signaling trust in the Israeli market.
- Housing Supply: 515 new units are en route to one of Tel Aviv’s most in-demand neighborhoods.
- Strategic Growth: The project is part of a larger wave of development reshaping the city from Sde Dov to Ramat Aviv.
