Masad Oz, America Israel Merge Real Estate Operations

In a significant consolidation within Israel's real estate sector, Masad Oz and America Israel have finalized a full merger, creating a formidable entity poised for public market debut. This strategic combination integrates America Israel's residential and commercial development expertise with Masad Oz's robust engineering and project management capabilities, spanning both real estate and infrastructure.

The newly formed group is actively preparing for a dual offering of debt and equity securities. This move is contingent on business trajectory and prevailing capital market conditions, signaling ambitious growth plans. The merger follows Masad Oz's acquisition of over 30% of America Israel in December, a transaction that valued the latter at hundreds of millions of shekels. Previously, Masad Oz's residential development arm was integrated into America Israel, including prime land in Netanya's new Havazelet neighborhood.

Leadership roles within the consolidated entity have been defined: Pinhas (Pini) Cohen will serve as Chairman, Amit Masad as Vice Chairman, and Alon Stauber as Group CEO. Key shareholders of America Israel, including Cohen, Shimshon Harel, Migdal Insurance and Financial Holdings, and Mercantile Discount Bank, will now hold stakes in the combined group. This transaction received support from Leumi Partners, a significant shareholder in Masad Oz, alongside Migdal and Mercantile.

Masad Oz, established approximately 30 years ago, has a strong legacy in managing large-scale engineering projects for both public and private sectors. Its engineering division boasts around 250 professionals and oversees projects valued at approximately 40 billion shekels. These include major infrastructure developments like the expansion of Ben Gurion Airport and the planning of its supplementary airport, alongside the development of residential areas slated for roughly 130,000 housing units nationwide.

In recent years, Masad Oz diversified into development, focusing on income-generating properties in London, industrial and logistics facilities, and residential projects. Notably, Leumi Partners invested 60 million shekels for a 20% stake in the company three years ago, underscoring its growth potential.

America Israel, a seasoned real estate developer, primarily concentrates on residential projects. The company has delivered over 7,000 homes throughout its history and currently manages approximately 2,500 housing units in partnership with other entities. Prominent projects include "Moza" in Tel Aviv, "CREATE" in Kiryat Ata, and the "Havazelet ART" complex in Netanya. The combined entity's expanded development pipeline and engineering capacity position it to capture a larger share of the Israeli real estate market, which has seen steady demand for housing and commercial spaces, driven by population growth and urbanization trends.