Aviv Group (TASE: AVIV) is in talks with Hagag Real Estate (TASE: HGG) and luxury real estate broker Rafi Kalina to purchase a lot on Shadal Street in central Tel Aviv adjacent to Rothschild Boulevard for NIS 730 million. Hagag notified the Tel Aviv Stock Exchange (TASE) about its negotiations today.
Hagag announced that it is in talks to sell the rights to the land but “Globes” has learned that Kalina will also be part of the deal. Kalina denies this and Hagag declined to comment beyond its notification to the TASE. “Globes” has also learned that Hagag’s talks are with Aviv Group, controlled by Doron Aviv and Dafna Harlev.
The 3,300 square meters lot is between Shadal Street, Yehuda Halevy Street, Yavne Street and Rothschild Boulevard. Hagag owns 50% of the lot through a subsidiary called Head Master Ltd., 50% of whose rights are held by it and 50% by broker Rafi Kalina. The project includes several buildings for preservation.
Shortly after purchasing the rights to the complex, about four years ago, Hagag Real Estate announced its intention to sell the property, but in the meantime continued to promote the plans for it, which were designed by architect Moshe Tzur.
Permit for a 40-floor tower
About 18 months ago, the Tel Aviv Local Planning and Building Committee approved a building permit for the construction of a 40-floor tower on the lot. The tower will include 120 residential units totaling 17,000 square meters and 320 hotel rooms totaling 20,500 square meters. Approval was also received for the construction of commercial space, but this is not substantial.
According to Hagag’s report, Head Master will be entitled to additional consideration, at a rate of 30% of the amount of receipts received by the Aviv Group in the project for apartments that will be sold at a price higher than NIS 115,000 per square meter (including VAT). Globes has learned that this agreement also applies to Kalina, who is also selling his share in the project.
The negotiations began four days ago, and the Aviv Group was given 45 days of exclusivity to sign the deal. According to Hagag’s report to the TASE, there will be additional considerations, conditional on the prices of the apartments that the Aviv Group will sell.
The Aviv Group has recently been recording a surge in housing purchases that indicates its plans to greatly expand the scope of its developments. Last week, it purchased land in three leading Israel Land Authority (ILA) tenders: at Herzliya airport Aviv purchased land for 254 housing units and 326 long-term rental housing units, and in the Sirkin complex in Petah Tikva, it purchased land for 393 housing units.
Published by Globes, Israel business news – en.globes.co.il – on January 5, 2026.
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