The Site

The land sits at the corner of Pierre Koenig and Poalei Tzedek streets. Today most of it is used as a car park, with an old commercial building on it. Back in late 2024, Oravani began advancing a plan to knock down that building and put the new development in its place.

What Is Planned

According to Shufersal’s filing with the stock exchange, the project will have:

• About 240 apartments, of which about 56 are for rent
• About 12,000 square meters of commercial and employment space

This is a change from the earlier plan. The approved plan allowed for 184 regular apartments plus 80 rental apartments. Shufersal’s numbers show the rental share has been cut back.

How the Deal Works

This is a combination deal, a common arrangement in Israel where the landowner and the developer share the finished project instead of one buying the other out. Oravani owns the land, and Tidhar will build. Oravani’s minimum share is set at 38% of the residential space, 41% of the commercial space and 35% of the employment space. Based on those shares, Shufersal estimates it will earn about NIS 50 million before tax. That figure is the company’s own estimate.

The Catch

The agreement includes a safety valve for Tidhar. If the project’s profitability falls below the level set in the contract, and Oravani refuses to reduce its share, Tidhar has the right to cancel the deal.

What It Means

For buyers, this is something to watch rather than act on today. The report does not mention prices or a sales launch date. It does show that large developers are still lining up new residential towers in Jerusalem, even with a record number of unsold homes nationwide.