By bnm Tel Aviv bureau
Israel Canada is set to acquire Acro's operations for ILS3.1bn ($990mn), turning Israel Canada into the largest real estate company in Israel. Representing a 10% premium over market value, the transaction will lead the company to an estimated combined valuation of ILS10bn ($3.2bn), Globes reported.
This deal may be arriving at an opportune time for Israel Canada, with the Bank of Israel seeking to boost home purchases through new housing loan restrictions. These include a 70% loan-to-value ratio for loans secured against existing apartments, while amounts exceeding 50% are capped at ILS200,000.
In addition, the purchasing power of prospective Israeli home purchasers appears to be on the rise. Whilst annual inflation held steady at 2.6% at the conclusion of 2025, GDP is on the rise, hitting 3.1% for 2025. This economic growth beat analysts' forecasts while signalling Israel's sustained post-war economic recovery.
The deal, completed late on February 18, will merge Acro, currently controlled by businessman Tzachi Arbov, into Israel Canada, which is controlled by businessmen Barak Rosen and Assi Tuchmeier. The purchase price will be paid through a combination of shares and cash, structured as 60% equity and 40% cash.
The acquisition provides Israel Canada with substantial scale advantages in Israel's competitive real estate market, particularly in urban renewal projects where Acro maintains a significant presence.
With Acro's portfolio of 61 projects under construction, including approximately 7,700 residential units and 165,000 m2 of office and commercial space, the merged entity will gain a significantly enhanced capacity to execute large-scale developments. This consolidation comes as Israel's construction sector faces headwinds from reduced apartment sales, though premium properties in Tel Aviv continue commanding elevated prices.
Acro's portfolio includes prominent projects such as Tel Aviv's Cosmopolitan development, which has generated approximately ILS 1bn ($320mn) in sales for 30,000 m2 since the beginning of the year.
