Direct Finance Expands to Real Estate Developer Loans with Sigma City Acquisition

Direct Finance, led by Eran Golan, is broadening its non-bank credit operations into financing real estate developers. The company's subsidiary, Direct Finance Real Estate and Mortgages, has agreed to purchase 85% of Sigma City Real Estate Finance's shares for approximately NIS 34 million, valuing the entire company at around NIS 40 million. Direct Finance will also provide Sigma City with NIS 29 million in owner loans, bringing the total transaction commitment to approximately NIS 63 million.

Sigma City's remaining 15% stake will be held by its current managers, Uri Dayan and Natan Tuviana, who will continue in their roles post-acquisition. The deal is contingent on regulatory approvals, including updated control permits from the Capital Markets, Insurance and Savings Authority, and consent from Sigma City's financing banks.

Sigma City, established in 2015, provides financing for residential construction projects in Israel, specializing in mezzanine financing for urban renewal and post-permit project funding. Its loans assist developers, particularly small and medium-sized ones, in meeting equity requirements. As of June 30, 2026, Sigma City's loan portfolio, including accrued interest, stood at approximately NIS 153 million.

This expansion into developer financing represents a higher-risk, higher-return segment compared to Direct Finance's core business of car and mortgage loans for individuals. The acquisition follows a strong second quarter for Direct Finance, which saw its stock price rise 30% in the last six months, reaching a market value of NIS 2 billion. The company reported a net profit of NIS 74.3 million for the quarter, a 324% increase year-over-year, driven by significant growth in its car loan and mortgage sectors.