A complex business dispute over a luxury real estate project is reaching a climax, with the emergence of significant mutual lawsuits between the parties involved in constructing the Bereshit Tower in Tel Aviv’s Bavli neighborhood. According to a report by TheMarker on September 20, 2026, the conflict is being handled via arbitration, following serious allegations from both sides regarding the project's management and significant delays incurred in recent years.
At the center of the dispute is a fire that broke out in the tower in January 2023, while the structure was in advanced stages of preparation for occupancy. The event led to extensive delays in the project timeline, triggering mutual claims regarding responsibility for defects and contractual breaches. Electra Construction, part of the Electra group controlled by brothers Danny and Mikey Zalkind, filed a lawsuit totaling approximately 270 million NIS against the Migdalei Bereshit-Daniel company, owned by the Kozinof family. Conversely, the Kozinof family filed a counterclaim for a significantly higher amount, estimated at 900 million to 1 billion NIS.
The arbitration process is expected to examine the complex arguments from both sides regarding accountability for the delays and the financial losses sustained. The mutual lawsuits reflect the high tension generated by the disruption to the luxury tower's occupancy schedule. As of now, no ruling has been issued, and the arbitration is intended to resolve the professional and financial dispute between the project stakeholders.
The affair is attracting significant interest in the Israeli real estate sector, as it involves a prominent project in a high-demand area. For professionals in construction and development, this conflict underscores the critical importance of managing contractual risks and establishing pre-agreed compensation mechanisms for unforeseen events, such as construction site fires, which can lead to massive costs and long-term litigation. The outcome of the arbitration may impact the reputation and financial stability of the involved parties, requiring complex decisions on questions of tort and contractual liability within real estate and construction law. Lacking a final decision, both parties maintain their positions while the legal inquiry continues within the arbitration forum.