Direct Finance Acquires Sigma City Real Estate Financing

Direct Finance, an non-bank credit company led by Eran Golan, is expanding its mortgage lending operations to finance real estate developers. The company's subsidiary, Direct Finance Real Estate and Mortgages, has agreed to purchase 85% of Sigma City Real Estate Financing for approximately 34 million shekels, valuing the company at 40 million shekels. Direct Finance will also provide Sigma City with owner loans totaling around 29 million shekels, bringing the total commitment for the transaction to approximately 63 million shekels.

The remaining 15% of Sigma City's shares will be held by its managers, Uri Dayan and Natan Tubiana, who will continue in their roles post-acquisition. The sellers include prominent figures from the capital markets and real estate sectors: Ezra Atar, co-founder and chairman of Sigma City, who has extensive experience in capital markets and banking; Shmuel Masnberg, chairman of Sigma City's credit committee and former deputy CEO of Mizrahi Tefahot Bank; Aliza Cohen, CEO and owner of Reshef Real Estate; and Meir Uzan, former owner of Shekel Insurance Agency.

Sigma City, founded in 2015, provides financing for residential construction projects in Israel, specializing in mezzanine financing for urban renewal and post-permit projects. As of June 30, 2026, its loan portfolio stood at approximately 153 million shekels. This area of financing carries a different risk profile than Direct Finance's core business of car loans and mortgages for private customers, with mezzanine financing being subordinate to bank financing and thus carrying higher interest rates and risks.

This acquisition follows a strong second quarter for Direct Finance, during which its stock price rose 30% in the last six months, reaching a market value of 2 billion shekels. The company reported a net profit of approximately 74.3 million shekels for the second quarter of 2026, a 324% increase year-over-year. The car loan division saw a fivefold increase in net profit, while the mortgage division reported a net profit of about 37 million shekels, partly due to a unique securitization deal of second-tier mortgage portfolios. Direct Finance also announced a dividend distribution of approximately 48.1 million shekels.