Afcon Holdings Ltd., one of Israel’s leading companies for large-scale and technology-intensive projects, has entered the U.S. energy infrastructure market through a joint venture with Namco Realty valued at up to $185 million. The partnership will focus on solar installations, energy storage systems and smart energy management solutions across U.S. commercial properties.

The joint venture will be held 25% by an Afcon subsidiary and 75% by Namco. For projects built on properties not owned by the partner, ownership will be split equally. Afcon will manage the venture, while major decisions will require unanimous approval. Both sides have agreed to maintain their ownership for at least five years, with rights of co-sale, right of first refusal and other customary provisions included in the agreement. The joint venture will operate for five years and automatically renew annually.

In the first phase, the companies plan to develop installations on up to 20 U.S. properties owned or co-owned by Namco. The total cost of these projects may reach $185 million, with approximately 65% to be financed through local lenders. Equity contributions will be proportional to each party’s share. If all planned installations are completed, the total generation capacity is expected to reach about 65 MWp, with an estimated internal rate of return before leverage of 11%–13%.

Construction must begin by mid-2026 in order to qualify for federal and local tax incentives, including the Investment Tax Credit (ITC). The first projects are expected to begin operating in 2027. If the venture receives all applicable subsidies and incentives, the expected equity payback period is about 24 months from the start of construction. Selected projects will only begin once risk-reduction conditions are met, including securing local financing, obtaining ITC-related insurance and finalizing agreements with local contractors at a maximum price with full performance guarantees.

Afcon Group Chairman Israel Raif said the partnership marks a major milestone in the company’s expansion into the U.S. market. “Afcon brings proven experience in initiating, financing, constructing and executing large-scale PV projects, including 300 MW of solar systems totaling more than €250 million,” he said. “We will now apply this expertise on a broad scale in the United States. The combination of Afcon’s accumulated engineering and managerial knowledge with our strategic partner’s strong capabilities and financial strength is expected to create significant value. The joint venture offers high return potential and meaningful room for expansion.”

Namco Chairman and CEO Igal Namdar said the agreement reflects a strategic shift toward renewable energy generation across the company’s real estate portfolio. “The partnership with the Shlomo Group is a significant step in unlocking the potential of our properties while contributing to sustainable energy production,” he said. “We look forward to a productive long-term collaboration that will create value for all parties.”

Under the agreement, the joint venture will plan, finance, build, operate and maintain rooftop, parking and open-space energy systems on partner-owned properties in the United States. The electricity generated will be sold to the tenants of those properties, with the possibility of expanding to additional assets pending mutual approval.