Seven municipal tenders have been completed for the construction of a new neighborhood in western Rishon Lezion on land vacated by a former military firing range near the city’s coastline.
According to the Rishon Lezion Municipality, Gindi Israel of the Gindi Holdings Group, Azorim, PriOr of the Mehadrin Group controlled by Yitzhak Tshuva’s Delek Group, and the Davidson Group won the seven tenders for the first phase of the “Park Hayam” neighborhood.
The total revenue to the municipality from the sale of the plots amounts to about NIS 1.4 billion ($448M). The seven plots are located in the first section of the 300-dunam area being vacated south of Rehavam Ze’evi Street, which leads to the sea. The Defense Ministry released the land earlier this year under an agreement with the municipality.
Gindi Israel won three of the seven tenders and will build 465 apartments. The remaining tenders were divided among the other three companies: Azorim will build 226 apartments, including one 25-story tower and three nine-story buildings on the plot closest to the coastline; PriOr will construct 294 apartments; and the Davidson Group will build 118 apartments. In total, 1,103 housing units are planned in this phase.
The new neighborhood is expected to include about 10,000 housing units overall. The first approved plan, authorized in January 2026, allows for approximately 3,600 units. Adjacent to the residential area, a nature reserve is planned to cover about 90 percent of the vacated land, and the city’s coastline is set to be extended by roughly 2 kilometers.
In September 2022, the Rishon Lezion Municipality signed an agreement with the Defense Ministry to evacuate the base, which spans about 9,500 dunams in a central area of the city that had long been closed to the public.
Mayor Raz Kinstlich said the strong marketing results and participation by leading real estate firms reflect “tremendous and absolute confidence in the city of Rishon Lezion,” adding that major companies have relocated headquarters to the city in recent years and that large developers continue to acquire land there.
Adi Barok, head of the city’s development authority overseeing several major projects, called the first marketing stage in Park Hayam “a significant milestone in the development of a high-quality neighborhood alongside an impressive nature reserve.”
Circular land deal in South Tel Aviv
Separately, the Reality Group announced Sunday that it has sold land in the Nes Lagoyim complex in the new Neve Ofer neighborhood in south Tel Aviv, shortly after winning it in a tender issued by the Israel Land Authority.
Reality paid the state about NIS 350 million for the approximately 13-dunam site in November 2025. It has now sold the land to Damarie and Goshen, owned by Micha Klein, Moshe Gabriel and Ariel Shov, for about NIS 450 million.
The site is designated for 498 housing units and commercial space. The sale reflects a gap of about NIS 100 million, representing a return on equity of roughly 60 percent within about three months.
The Nes Lagoyim complex is part of the approved “New Neve Ofer” plan, which spans about 213 dunams between Ben Zvi Street, Nes Lagoyim Street, Greenboim Street and the Shlavim axis. The neighborhood is expected to include about 1,600 housing units, along with public buildings, employment areas, hotel space and commercial frontage along main roads.
Dan Menachem, managing partner of equity funds at Reality Group, said the transaction demonstrates the firm’s ability to identify value gaps in complex assets and convert them into mature investment opportunities within a short time frame.
Micha Klein, CEO of Goshen, described the acquisition as a strategic move carried out in partnership with Damarie, calling the area one of the most developing and intriguing districts in south Tel Aviv within the framework of an approved urban renewal plan.