Red Sea Development will work to promote large-scale urban renewal projects.
Red Sea Development, part of the Papouchado Group, has acquired approximately 20% of the shares of Shelly Epstein Urban Renewal as part of an initial investment, with the possibility of additional investment in the future. The collaboration is intended to advance large-scale urban renewal projects, thereby increasing the housing unit pipeline promoted by the companies and the supply of apartments in the Israeli real estate market in the coming years.
Shelly Epstein, owned by Gil Shelly and Ron Shelly, has a pipeline of approximately 1,000 housing units in advanced planning stages across the Gush Dan area, including in the cities of Holon, Givatayim, Ramat Gan, and Netanya. The companies are already jointly promoting two projects in Ramat Gan to build approximately 400 housing units and are exploring additional opportunities. Gal Saig, CEO of Shelly Epstein, will also serve as head of urban renewal at Red Sea Development.
This move reflects the growth trend of the Red Sea Development in the local real estate sector, with an emphasis on promoting initiatives in collaboration with leading companies in the field.
The Papouchado Group was founded by Eli Papouchado in the 1970s, with its first projects including the "Red Rock" Hotel in Eilat and the "Avia Sonesta" Hotel in Taba (then under Israeli control). Today, the group initiates, builds, manages, and operates a variety of projects in the hospitality sector and data center farms worldwide.
In Israel, the group continues to initiate and build residential projects and over the years has been a partner in establishing thousands of housing units across the country in cities such as Tel Aviv, Herzliya, Jerusalem, Haifa, Hadera, Eilat, Rishon Lezion, Yehud, Rehovot, Ashkelon, Modiin, and Pisgat Ze’ev.
Tzahi Omer, CEO of Red Sea Development from the Papouchado Group:
"We have joined forces with Shelly Epstein to create a multiplier effect in the urban renewal sector and strengthen our presence in the industry. The connection with Shelly Epstein combines the knowledge, experience, and networks of both companies, creating a strong platform for leading complex urban renewal projects.
We see this collaboration as an opening for significant expansion and for leading initiatives that will result in high-quality residential projects, especially now, when the need for safe and upgraded housing is becoming more acute."
Gal Saig, CEO of Shelly Epstein Urban Renewal:
"The collaboration with Red Sea Development is a strategic move that strengthens our capabilities and allows us to advance projects on a larger scale and at a faster pace. Yam Suf brings reputation, experience with a proven industry track record, and financial stability, and we see this partnership as an opportunity to create real value for both developers and residents, with a focus on quality planning, infrastructure upgrades, and revitalizing the urban fabric in older areas."