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Home Special Real Estate Magazine

When kibbutz entrepreneurship meets real estate ventures

The members of Ramat Rachel were able to exploit the kibbutz's unique location to promote real estate projects and touristic and social initiatives, infusing new content into the pioneer spirit of the past.

by  Dafna Balzar
Published on  10-08-2021 06:03
Last modified: 10-11-2021 13:04
When kibbutz entrepreneurship meets real estate venturesWikimedia Commons

The Archaeological Park | Photo: Wikimedia Commons

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What does a kibbutz that knows how to profit from its real estate look like? Neglected lands became a kind of luxury neighborhood in Jerusalem, without losing their unique quality.

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Kibbutz Ramat Rachel was founded in 1926 by the socialist Zionist workgroup Gdud HaAvoda. From its very first day on the ground – or just by the very fact of settling an isolated mountaintop, then on the Jordanian border – this was a novel, pioneering enterprise.

The kibbutz, built on rocky terrain, was first intended to fulfil urban needs. Its members worked at the Dead Sea Works plants and laid the Jerusalem railway. Its early activities were geared to serve the city, with a bakery, a laundry service, and a dairy barn providing goods to Jerusalem.

The kibbutz's story is tied up with the early history of the State of Israel, when it was a frontier settlement that was often the target of attacks and violent confrontations.

In the 1950s, at the state's request to create large agricultural territories and after an in-depth study regarding what crops could be grown in the unique weather conditions and on the rocky ground where it stood, the kibbutz decided to plant cherry and apple orchards meant to protect the state's borders.

Today, the fruit from these orchards is used by the high-quality organic liqueur winery ONA – a unique winery that sells earthy, hand-made products. Customers visiting the winery, situated among cherry orchards and strawberry nurseries, can enjoy its special atmosphere. The liqueurs, with an alcohol content of 20% to 25%, are balanced and make for a unique drinking experience. The winery employs workers with disabilities as part of the kibbutz's community-oriented agenda.

Not just agriculture

Realizing that agriculture could not fulfill their economic vision, after the Six-Day War the kibbutz members identified growing demand for touristic services in Israel and built a youth hostel. In the 1970s the hostel became a guest house, and in the 1980s – a hotel, which was expanded and renovated over the years. During the coronavirus pandemic the hotel was again renovated to connect past and present. The rooms were designed in a unique style in tribute to the private rooms of kibbutz members within the public space. The renovation was done mostly by Israeli workers, incorporating elements of Israeli art and using smart, green systems to protect the natural environment.

In 1977, the kibbutz's pool was constructed. From the first, it served Jerusalem's residents as well. Many consider the kibbutz another Jerusalem neighborhood. Two years ago, millions of shekels were invested in renovating the pool area, which has become a stunningly beautiful country club with several pools, gyms, a high-quality spa, a restaurant, and sprawling lawns.

While touring the complex I met a charming man called Yehezkel Halevi. He lives in Jerusalem, and in 1948, as a member of the elite Palmach fighting force, he took part in liberating the kibbutz's lands and preventing Jerusalem's fall into Jordanian hands. Today he has a subscription to the country club and feels as if he's come full circle whenever he visits the kibbutz.

Diverse attractions

Being near Jerusalem has provided Ramat Rachel over the years with a wealth of challenges and opportunities. In real estate terms, the kibbutz did wisely to sell its part, 20%, of the agricultural lands that were approved for construction of 1,800 housing units.

The entrepreneurial spirit is clearly felt in the change the kibbutz has undergone and its emphasis on integrating the old and the new. What was once a petting zoo has become the Eyal Farm – an educational-therapeutic ecological farm that operates exciting programs for a day center serving people with special needs, activities developed with the kibbutz education system, and activities and tours for the hotel's guests and other visitors.

Another amazing touristic attraction is the archeological garden, with a fascinating story 2,500 years old, set within an olive grove. On guided tours before Jewish holidays, visitors receive special 3D binoculars that bring history to life in the garden's impressive archeological exhibits.

The touristic contents allow Israelis and tourists to visit and enjoy diverse attractions – riddles created by Dan Chamizer, an independent tour using a phone app, a virtual reality experience, and more.

From generation to generation

The kibbutzniks give the word "pioneering" a new meaning. The pioneers who founded Ramat Rachel were innovators by the very fact of choosing its location, and the new generation feels a commitment to continue in their footsteps. The kibbutz's old chicken coop is being converted into a "kibbutz yard" – in tribute to the famed kibbutz activity yards – where visitors will be able to make and buy products and enjoy a touristic experience.

The complex includes a liqueur winery, a local produce shop, a 12-dunam hydroponic farm, an educational nursery exemplifying 7 methods of hydroponic farming, and a DIY boutique beehive. Planned for the future is an agricultural heritage center.

The country club offers activities that combine the values of sustainability, agriculture, and quality of life: connecting agriculture to nutrition (from the greenhouse to the glass – fruit shake workshops), mind-body workshops, outdoor classes in the kibbutz's natural setting, and online classes during lockdowns.

A business corporation

Ramat Rachel, besides being a communal kibbutz, is also a business corporation. Its business portfolio includes tourism, real estate, agriculture, and welfare (a care home and a family emotional assistance center, which expanded during the pandemic).

The kibbutz's perspective as a corporation (with the whole greater than the sum of its parts) allows for interesting combinations between its different businesses, such as talks offered by the family center to country club members during the pandemic, projects connecting agriculture and tourism or the archeological garden and the beehive, agricultural tours, and more.

The close ties between the community and the kibbutz's business activities is also evident in the connection between old and new in its business operations themselves, as well as in various elements that tell the whole story.

The kibbutz chose to adopt advanced marketing platforms to promote its products, such as a series of radio plays that tells its story, a video magazine about the people and their work, and a rebranding process implemented in the various contact points between the kibbutz and the hotel's guests.

The business aspect goes hand in hand with the kibbutz members' broad social involvement. They employ their proximity to Jerusalem not just as a business opportunity but also to advance major social benefit projects in direct contact with the city's welfare bureaus.

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The kibbutz's approach is based on maximizing its abilities to achieve social goals, such as operating an industrial kitchen that cooks prepared meals for the needy, carpentry, welding, and maintenance workshops for home renovation, and a multi-generational program connecting seniors with youth and even children working together on various projects.

Ramat Rachel donates hundreds of pre-cooked meals each year during the holidays, all prepared by the kibbutz members, and executes projects in "extreme makeover" style, renovating a family's home within two or three days while they stay at the hotel.

Dafna Balzar is an educational counselor, a Ph.D. candidate, and an educator.

This article might include sponsored and commercial content/marketing information. Israel Hayom is not responsible for its nature or its credibility. The publication of such content or information shall not be considered a recommendation and/or an offer by Israel Hayom to purchase and/or use the services or products mentioned in this article.

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