M.V. Investments: Tel Hashomer Moves From Planned Land to a Financed Project
At Tel Hashomer, fair value only reached NIS 52.8 million in 2025, but the real change came after the balance sheet date: bank funding for the betterment levy, Sale Law guarantees of NIS 55.3 million replacing prior collateral of NIS 43.9 million, and the release of about NIS 11 million from Series B trust proceeds. This follow-up tests why that is a financing-quality upgrade, while execution is still not fully proven.
The main article already identified Tel Hashomer as one of the assets that carries value but had not yet produced real liquidity. This follow-up isolates the event thread that opened between year-end 2025 and March 2026: how an asset whose fair value only rose to NIS 52.8 million moved, in a short period, from the logic of encumbered land, a betterment-levy appeal and an appraisal-based story into the logic of bank financing, Sale Law guarantees and released cash that had been trapped in the Series B trust account.
That is a real step forward, but it only applies to part of the story. The improvement is primarily on the residential leg. That is where the company has an effective 28.7% share, or roughly 17 apartments out of a 58-unit building. By contrast, the commercial and office parcel is still in a different place entirely. The annual report says no agreement had yet been signed with a developer for that parcel, and the company’s expected share there remains about 212 sqm of retail and 2,272 sqm of offices on paper. So Tel Hashomer is no longer just planned land, but it is still not a fully de-risked project across the whole asset.
Four sharp takeaways frame the story.
- The value itself did not explode: from NIS 50.8 million at the end of 2023 to NIS 51.3 million at the end of 2024 and NIS 52.8 million at the end of 2025, with only NIS 1.424 million of revaluation gain in 2025.
- The active bottleneck was the betterment levy. The September 30, 2025 appraisal estimated it at NIS 11.686 million, and the March 2026 package built around it includes a roughly NIS 5.8 million loan plus a bank guarantee for the second half, almost the same scale.
- The March 2026 move improved collateral quality: Sale Law guarantees stood at about NIS 55.3 million, versus prior collateral valued at about NIS 43.9 million.
- The new stage still did not generate project cash flow, but it did release about NIS 11 million of previously trapped Series B proceeds, which is a much more tangible liquidity event than a NIS 1.4 million appraisal gain.
| Layer | End-2025 position | March 2026 position | Why it matters |
|---|---|---|---|
| Tel Hashomer fair value | NIS 52.8 million | No updated fair value in the immediate report | Through year-end, the story was still mostly appraisal-based |
| Residential financing status | The annual asset table still listed only the signed combination agreement as the funding source | Bank loan and bank guarantee for the betterment levy, plus Sale Law guarantees | The asset moved from a planning framework into a concrete financing framework |
| Series B collateral | Mortgage and land charge | Sale Law guarantees of NIS 55.3 million instead of prior collateral of NIS 43.9 million | Security quality shifted from land collateral to project-stage collateral |
| Liquidity contribution | About NIS 1.9 million remained restricted in the Series B trust account at year-end | About NIS 11 million of the January 2026 private placement proceeds were released | Tel Hashomer started improving financing flexibility, not just reported value |
| Execution status | Permit expected in 2026 and completion expected in 2029 | No explicit change to that timetable in the immediate report | Financing improved before execution was proven |
The value barely moved, but the quality of the story did
If you only look at the valuation table, Tel Hashomer appears to be moving slowly. Fair value increased by only NIS 2.0 million between the end of 2023 and the end of 2025, and the 2025 revaluation gain was just NIS 1.424 million. That number alone does not explain why Tel Hashomer became more important in 2026.
What matters more sits inside the valuation assumptions. The September 30, 2025 appraisal was based on 4,524 sqm of residential area, 2,253 sqm of employment area, 212 sqm of retail, a 43% combination ratio and a 0.93 delay coefficient. That is still the language of appraised land with time-to-execution embedded in the math, not the language of a fully financed project already moving into construction.
The year-end asset table makes that point even more clearly. In the line for future financing sources, the report still referred only to the signed combination deal for the residential leg. In other words, as of December 31, 2025, Tel Hashomer was still being presented as an asset whose economic logic rested on the combination agreement with ICR and expectations around permit timing, not on a bank package already activated in practice.
That is the key distinction. Through year-end 2025, Tel Hashomer was mainly appraised value. By March 2026, it began to turn into value that can improve collateral quality and funding access. Those are not the same thing.
The betterment levy was the bottleneck, and the bank package addressed it
The active constraint was not an abstract planning question. It was a very concrete number: the betterment levy. According to the valuation table at year-end, the levy estimate stood at NIS 11.686 million. The company also disclosed that the decisive appraiser significantly reduced the assessment in March 2025, but that an appeal had been filed and was still pending before the appeals committee.
That is where March 2026 changes the picture. The annual report and the immediate report describe the same economic logic: the company received a roughly NIS 5.8 million loan from Discount Bank to pay half of the betterment levy, while also providing a bank guarantee for the second half. In other words, the company did not resolve the levy dispute through a final legal outcome. It moved past the bottleneck by putting in place a financing structure that allows the project to keep advancing anyway.
That matters because the improvement in March 2026 was not another round of appraisal optimism. It was a change in language altogether. Instead of another value range per sqm or another 10% sensitivity case, the file set suddenly shows a bank loan, a guarantee, a trustee and released cash. That is a move from appraised land toward an execution chain.
There is also a more subtle point here. As of year-end 2025, the appraisal still carried a 0.93 delay coefficient. The March 2026 package does not erase that delay, but it does show that the banking system is already willing to finance the next stage. In terms of value quality, that is a bigger upgrade than another NIS 1.4 million of revaluation gain.
March 2026 replaced land collateral with project guarantees
The most important part of the March 15, 2026 immediate report is not only the levy loan. It is the collateral mechanism. On March 12, the company received Sale Law guarantees from Discount Bank in connection with its units in the project and delivered them to the Series B trustee instead of the mortgage registered in its favor, which is to be removed.
That is a material change in the nature of the security. Before that, Series B holders effectively sat on land collateral. After the move, they sit on Sale Law guarantees amounting to about NIS 55.3 million. The immediate report explicitly adds that this amount is higher than the prior collateral, which had been valued at about NIS 43.9 million under the latest valuation.
The gap of roughly NIS 11.4 million, or about 26%, does not mean the asset itself suddenly became more valuable at that moment. It would be wrong to fuse asset value and Sale Law guarantees into one stronger claim. But it is fair to infer that the company succeeded in replacing a more passive land-based security package with one tied to a project financing structure. For a bond-driven capital structure, that is precisely the kind of shift the market should care about.
This is also where the real liquidity effect comes from. Once the guarantees were deposited, the Series B trustee released about NIS 11 million to the company out of the proceeds of the January 2026 private placement. This was not an asset sale, and it was not operating cash flow. But it was cash that had been trapped by the collateral structure and was now made available. For M.V. Investments, that is the first practical step by which Tel Hashomer moved from “value that supports a covenant” to “an asset that improves cash flexibility.”
In that sense, March 2026 matters more than all of 2025. In 2025, Tel Hashomer contributed NIS 1.424 million of revaluation. In March 2026, it contributed about NIS 11 million of released cash. That is no longer just an accounting point. It is a liquidity event.
What is still unresolved
Precisely because the improvement is real, it should not be overstated. The annual report still says the building permit is expected during 2026 and completion during 2029. The immediate report does not explicitly change that timeline. So financing improved before operational proof arrived.
The second open issue is that Tel Hashomer still has two different economic legs. The residential leg is the one that made the leap. That is where the combination deal exists, where ICR sits, where Discount Bank entered, and where the Sale Law guarantees belong. The commercial and office leg is still different. The annual report explicitly says that, as of the report date, no agreement had been signed between the parcel partners and any developer. So the phrase “from planned land to a financed project” is true, but only for part of the asset.
It is also worth remembering that the roughly NIS 5.8 million loan is not free money. It is due as a single payment 46 months after construction starts, and it carries quarterly interest at prime plus 1.3%. So the new stage solves a financing bottleneck, but it also adds project-level debt. Until the permit is received and construction actually starts, there is still no hard evidence that this debt is sitting on a project that has truly begun to work.
For a bond-only company, the broader implication is clear. Tel Hashomer has started to prove that it can support the financing structure, but it has not yet proved that it can generate cash from a completed project. Economically, that is still a meaningful distance.
Bottom line
The thesis is simpler now than it was at year-end 2025: Tel Hashomer still has not crossed from planning into full execution, but it has already crossed from the status of appraised, encumbered land into the status of a residential project with bank financing, Sale Law guarantees and the ability to release previously trapped cash.
That matters because, in M.V. Investments, value is not measured only by a fair-value line. It is measured by whether an asset can improve collateral quality, open liquidity and support refinancing. Tel Hashomer gave the first real positive answer to that question in March 2026.
One caveat remains critical. The move still does not close the execution gap. The permit is still ahead, construction had not yet started as of the report date, and the commercial and office leg is still waiting for a developer agreement. So this continuation does not claim that Tel Hashomer is already “mature.” It makes a narrower but important claim: Tel Hashomer is no longer just an appraisal. It has started to become a real financing tool.
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