The relentless momentum of Israel’s commercial real estate sector was underscored this week as Amot Investments solidified plans for a massive redevelopment project on the Ayalon corridor. By securing a 50% stake in the veteran Agish-Raved property, Amot has triggered a 1.7 billion NIS initiative that will replace aging infrastructure with a state-of-the-art business tower, signaling unwavering confidence in the long-term strength of the Tel Aviv economy.
Blueprints for Future Growth
- Strategic Joint Venture: Amot Investments has partnered with Raved to co-develop a 65,000 square meter office tower.
- Major Capital Injection: The partners project a total investment of 1.7 billion NIS, split evenly between the two firms.
- Government Integration: The site will be merged with state land to facilitate a dual-tower complex, including a new government precinct.
- Transit-Oriented Design: The project capitalizes on immediate access to heavy rail, the Red Line, and future Metro stations.
Securing a Foothold on the Ayalon Axis
In a deal reflecting the high stakes of Tel Aviv’s prime real estate market, Amot Investments, led by CEO Shimon Abudraham, executed a binding agreement to purchase 50% of the rights to the Agish-Raved building. The acquisition from logistics firm Oryan-Agish commanded a price of 240 million NIS. This figure includes a 130 million NIS payment for the rights themselves, alongside a significant betterment levy paid to the Tel Aviv Municipality. The site, currently a modest six-story structure at the corner of Yigal Alon and Noah Mozes streets, sits at a critical junction east of the Ayalon Highway, neighbored by the ToHa project and Hashalom Train Station.
Why is the Municipality Levying Such High Fees?
Investors and industry observers will note the substantial 109 million NIS betterment levy Amot is expected to pay. This high valuation is directly tied to the site’s proximity to a planned Metro station. Under current urban planning regulations, this proximity triggers a 65% levy on additional construction rights—specifically those exceeding the base 23,000 square meters allowed under interim plans. By paying this premium now, Amot is effectively unlocking the potential to build vastly more density, calculating its buy-in for the 65,000 square meter planned rights at approximately 7,400 NIS per square meter.
Transforming the Skyline: The Master Plan
The vision for this site extends far beyond a simple renovation. The current 9,000 square meter building, which includes two office wings and underground parking, is slated for demolition. In its place, a comprehensive new urban plan will merge the plot with an adjacent four-dunam parcel of state-owned land.
The result will be two distinct towers overlooking the Ayalon Highway. The southern tower, the “Amot-Raved” project, will be developed by the partnership and encompass 65,000 gross square meters. Simultaneously, the state will construct a northern tower boasting 100,000 square meters, intended to house a new government precinct. Designed by Yaski Mor Sivan Architects, the complex is expected to open its doors in approximately six years.
Amot’s Corridor Strategy
This development is a calculated piece of Amot’s broader strategy to create a contiguous belt of high-value assets along the Gush Dan transportation artery. From Hashalom Station to the Diamond Exchange (Bursa) in Ramat Gan, Amot is securing dominance along the route serving the heavy rail, light rail, and future Metro. Currently, the company holds roughly 644,000 square meters of assets and rights along this specific axis, including high-profile sites like the Solelim project, ToHa 1 and 2, and the Atrium Tower.
| Feature | Agish-Raved House (Current) | Amot-Raved Tower (Future) |
|---|---|---|
| Structure Height | 6 Floors | High-rise Tower |
| Built Area | 9,000 sq meters | 65,000 sq meters (Gross) |
| Primary Ownership | Mixed (Oryan-Agish/Raved) | 50/50 Partnership (Amot/Raved) |
| Strategic Context | Aging Office Block | Key Node in Government & Business Hub |
| Transit Connectivity | Existing Rail/Light Rail | Enhanced integration with Future Metro |
Investor Watchlist
- Monitor Zoning Approvals: Watch for the finalization of the lot merger between the private partnership and the state-owned land.
- Track Metro Progress: As the betterment levy is tied to the Metro, delays or accelerations in mass transit construction will impact the asset’s realized value.
- Observe Leasing Trends: With 65,000 sqm coming online in six years, pre-leasing activity will be a bellwether for Tel Aviv’s future office demand.
Glossary
- Betterment Levy (Heitel Hashbacha): A tax paid to a local committee for planning and building when a property’s value rises due to an approved urban plan (like increased building rights).
- Dunam: A unit of land area used in Israel, equivalent to 1,000 square meters (roughly 0.25 acres).
- Gush Dan: The metropolitan area of Tel Aviv and its surrounding cities.
- Taba (Urban Building Plan): The statutory document regulating land use and construction rights for a specific area.
- NIS: New Israeli Shekel, the currency of Israel.
Methodology
This report is based on financial disclosures and real estate news regarding Amot Investments’ acquisition of rights in the Agish-Raved building as of February 2026. Data regarding investment totals, levies, and square footage are derived from the terms of the deal reported in the source text.
Frequently Asked Questions
What is the total estimated cost of the new tower project?
The total investment for the Amot-Raved tower is estimated at 1.7 billion NIS. Since it is a 50/50 partnership, each company is expected to invest approximately 850 million NIS.
Why is the betterment levy so high for this specific transaction?
The levy amounts to 109 million NIS because the property is located near a future Metro station. This proximity allows the municipality to charge a higher rate (65%) on the additional building rights granted beyond the standard zoning allowance.
What will happen to the existing building on the site?
The current six-story building, which serves as office space, will be demolished to clear the way for the new high-rise construction.
Who is designing the new complex?
The architectural planning is being led by the renowned firm Yaski Mor Sivan Architects.
What is the timeline for completion?
The project is currently expecting an occupancy date in approximately six years, placing the completion around 2032.
Moving Forward
The commitment of 1.7 billion NIS by major players like Amot and Raved serves as a tangible indicator of market resilience. As the regulatory and planning phases proceed, the focus will shift to the efficient integration of this commercial hub with the planned government precinct next door, potentially creating one of Tel Aviv’s most dense and vital economic districts.
Final Summary
- Investment Confidence: A 1.7 billion NIS project confirms strong institutional belief in Tel Aviv’s office market.
- Urban Renewal: Low-density vintage buildings are being aggressively recycled into high-density modern towers.
- Infrastructure Synergy: Real estate value is increasingly dictated by proximity to the evolving Metro and Light Rail networks.
Appendix: Why We Care
This deal matters because it represents more than just a construction project; it is a signal of the Israeli economy’s enduring vitality. Despite regional challenges, top-tier investment firms are pouring billions into long-term infrastructure, banking on a future where Tel Aviv remains a premier global business hub. Furthermore, the collaboration between the private sector and the state (via the adjacent government tower) showcases a unified approach to urban planning that maximizes land use in a resource-constrained country.
