Migdal Insurance Buys Half Stake in Parschkovsky Rental Projects

Migdal Insurance is continuing its aggressive real estate expansion, announcing a deal to acquire a 50% stake in three long-term rental housing projects from the Parschkovsky company. The transaction involves 800 housing units across Lod, Beer Yaakov, and Ramat Gan.

Parschkovsky will continue to manage the properties after the sale. The company estimates its cash flow from the deal will be approximately NIS 156 million and recognized a profit of about NIS 111 million. The sale represents a significant move for Migdal's real estate arm, which is considered the fourth-largest real estate company in Israel.

The projects include 286 units and 1,800 square meters of commercial space in Lod's Ben Shemen neighborhood, where Parschkovsky will receive NIS 301 million for its share. In Beer Yaakov, 298 units are under advanced construction, with Parschkovsky receiving NIS 330 million for its stake. The Ramat Gan project, Ganei Azar, will feature 195 units (potentially expandable to 215) and 700 square meters of commercial space, for which Parschkovsky will receive NIS 66 million.

This acquisition follows a series of substantial real estate investments by Migdal in recent months. In early July, the insurer purchased a quarter of the Golden Mall in Rishon LeZion and a new commercial floor for NIS 840 million. Migdal also acquired stakes in Geya Doron Levy and Ashtrom Residential for rental properties, totaling hundreds of millions of shekels.