Yuvalim Real Estate Funneled Millions to Partner's Charity Unnoticed

Real estate group Yuvalim transferred nearly 20 million shekels between 2020 and 2024 to the Keren Ahavat Chesed charity, run by Rabbi Yitzhak Neria. Yuvalim partnered with businessman Avishai Neria on projects in Netanya and Ness Ziona, but failed to disclose to investors that Neria is a co-founder of the charity receiving 10 percent of the venture's profits.

Business Partnerships and Mandatory Charity

Avishai Neria, whose family operates the charity, includes a mandatory clause in his business agreements requiring partners to dedicate 10 percent of project profits to charity. While Yuvalim reported donations exceeding 19.2 million shekels to investors, it omitted Neria's foundational connection to the recipient organization in public filings. Corporate governance experts suggest this omission represents a gray area that may have required clearer disclosure to public bondholders.

Regulatory Scrutiny and Legal Disputes

Legal battles involving Neria and former business partners have drawn the attention of the Jerusalem District Court, which recently forwarded court rulings to the Tax Authority and the Registrar of Associations for review. Representatives for Yuvalim stated that the company operates in full transparency and compliance with the law, noting that the subsidiary's contributions represent a minor fraction of its equity.