Billion-shekel battle in Bavli's 'Bereshit' project: Electra and developer file mutual claims

The luxury 'Bereshit' project in Tel Aviv is becoming a legal battlefield: Electra Construction, a subsidiary of Electra Ltd., is suing for ₪270 million, while the developer responds with a massive counter-claim of up to ₪1 billion.

Electra Construction and 'Migdalei Bereshit Daniel', the developer of the 'Bereshit' project in Bavli, have filed cross-claims in an arbitration proceeding. Electra is suing for approximately ₪270 million over delays and non-payments, while the developer is claiming ₪900 million to ₪1 billion. The dispute stems from disagreements over project management, delays, and a fire at the site.

A massive dispute in the luxury 'Bereshit' real estate project in Tel Aviv's Bavli neighborhood: Electra Ltd. reported today (September 20) that its subsidiary, Electra Construction, and the development company, 'Migdalei Bereshit Daniel - Real Estate Ltd.', have filed cross-claims against each other in an arbitration proceeding. The claims, filed on September 18, reveal deep legal and commercial disputes concerning one of the city's prominent projects.

According to the report, Electra Construction's claim stands at approximately ₪270 million. Conversely, the developer filed a counter-claim for an astronomical sum ranging between ₪900 million and ₪1 billion, with the final amount contingent on apartment delivery dates in the project.

Roots of the dispute

At the heart of the conflict lie mutual allegations regarding project management and execution. Electra Construction claims, among other things, delays by the developer in providing execution plans, frequent required changes, and failure to receive full payment due for completed work. The company further alleges the impact of "exogenous events" on the project, including the consequences of a fire that occurred in the building during construction. According to Electra, these events affected work completion dates and the pace of apartment sales.

On the other hand, the developer's high claim amount points to weighty allegations on its part, likely regarding significant project delivery delays and resulting damages.

Parallel lawsuit against insurance company

An interesting detail arising from the report is that the developer is concurrently conducting another legal proceeding related to the project. On July 20, 2026, the developer filed a lawsuit against Migdal Insurance Company Ltd. in the Tel Aviv District Court for ₪480 million. Electra notes that "material financial remedies claimed in the client's lawsuit against Electra were also claimed (in the same manner and scope) in another lawsuit conducted by the client against the insurance company." This fact may indicate that the developer is attempting to secure coverage for its alleged damages on multiple fronts simultaneously — from both the prime contractor and the insurer.

At this stage, Electra states it is studying the details of the developer's claim and that it is too early to assess the merits of the cross-claims. The dispute in the flagship Bavli project is expected to draw significant interest in the real estate and investment market, given the large sums involved and the standing of the companies.