Real estate9/24/2026

Bavli Residential Project at the Center of Six Legal Claims

The luxury “Bereshit Towers” high-rise in Tel Aviv is facing mutual claims totaling hundreds of millions of shekels from the developer, the contractor and the insurance company, as well as claims by purchasers. Ten years after sales began, only 76 of the 168 apartments have been sold.

Key facts

•Project: “Bereshit Towers” high-rise, Tel Aviv
•76 of 168 apartments have been sold
•Electra Construction’s claim: NIS 270 million
•The developer’s counterclaim: approximately NIS 900 million
•The lawsuit against Migdal: NIS 480 million
•Case numbers and judicial rulings were not specified

The Dispute Between the Developer and the Contractor

Migdaley Bereshit Daniel Ltd., which manages the project on behalf of the Kuzinoff family, and Electra Construction have filed mutual claims in confidential arbitration. Electra Construction is demanding NIS 270 million for work performed, changes to the construction plans, lost profits and the effects of external delays, including a fire. The developer filed a counterclaim of approximately NIS 900 million, alleging that delays by the contractor affected the completion of the work and the sale of the apartments.

The Claims Against the Insurance Company

In a separate NIS 480 million lawsuit filed by Migdaley Bereshit Daniel against the Migdal insurance company, the plaintiff alleges that the insurer delayed payments for restoring building systems damaged in a 2021 fire. The company also claims that the insurer’s actions led Electra to leave the site before completing the work and delayed the project by at least 15 months.

The Purchasers and the Status of the Project

According to the report, approximately seven proceedings initiated by purchasers are pending against the developer, and some transactions have been canceled. The occupancy permit was issued in April of the previous year, but according to market estimates, a substantial proportion of the apartments were still not ready. The source does not specify case numbers, court names, legal grounds for the claims or rulings on their merits; the arbitration between the developer and the contractor has only just begun.

Sales Are Progressing Slowly, While Prices Remain High

The Israel Tax Authority recorded the sale of 76 of the 168 apartments during the project’s ten years of marketing. Only two transactions were signed in recent months: four-room apartments on the upper floors sold for NIS 15.7 million and NIS 14.2 million—approximately NIS 110,000 per square meter. The source contains a discrepancy regarding the Kuzinoff family’s apartments: one section states that there are 15 properties, while another states 14.

What this means for you

For a purchaser of an apartment in a project under construction, disputes of this kind may result in delays in completing the work, occupancy and the repair of defects, even if an occupancy permit has already been issued. However, the mere existence of large claims does not in itself establish the parties’ liability: the claims described have not yet been decided, and their degree of substantiation will need to be determined in the appropriate proceedings.

Find a lawyer for this topic

Case analysis based on court rulings