Harel Group Invests NIS 390 Million in Tidhar, Unlocking New Opportunities

In a groundbreaking development for the local real estate industry, the Harel Group has entered into a strategic partnership with Tidhar, a leading private construction and entrepreneurship company, by acquiring a 10% stake for a substantial NIS 390 million. This deal marks the first time that Tidhar's closely guarded financial data has been disclosed, revealing the company's value to be NIS 3.5 billion "before the money" and NIS 3.9 billion post-transaction.

Notably, this investment does not represent an exit for Tidhar's owners but rather provides the company with a significant cash injection for future investments and growth. With the real estate market experiencing stagnation in recent years and soaring land prices, Tidhar aims to capitalize on the opportunities that will arise as a result of this partnership with Harel.

The move is expected to equip Tidhar with the necessary financial resources to increase land acquisitions and undertake new projects. With the prevailing assessment in the industry indicating that a plethora of opportunities will soon surface, only companies with substantial cash reserves like Tidhar will be able to leverage these prospects to their advantage.

Harel and Tidhar have already established a successful partnership in the past, having joined forces in 2020 to manage and develop a million square meters of profitable real estate assets in the years to come. This previous collaboration has paved the way for the strengthened alliance between the two companies, enhancing their shared vision for the future.

Tidhar, founded 30 years ago by Gil Geva and Aryeh Becher, with later involvement from partner Mark Wiseman, is presently the largest private real estate company in Israel. Under the leadership of CEO Uri Levin, formerly the CEO of Discount, Tidhar has transformed from a general contractor into an entrepreneurial-contracting powerhouse. With a workforce of around 1,000 individuals, including 250 engineers, the company boasts an impressive portfolio of over 20,000 apartments and approximately 2 million square meters of diverse commercial spaces.

Yair Hamburger, Chairman of the Harel Insurance and Finance Group, expressed his confidence in the partnership, stating, "Our joint activity with Tidhar in recent years has proven to us beyond any doubt that we are meant to walk together. Now we anchor it even more firmly, as partners, in the Tidhar group."

This monumental deal is expected to revolutionize the real estate landscape in Israel, offering Tidhar the means to thrive in an increasingly competitive market and spearhead new and ambitious ventures for the future.