Golden Mall Becomes Israel's Largest After $27 Million Expansion

The Golden Mall in Rishon LeZion has expanded by approximately 12,000 square meters, adding around 30 new stores and reaching a total area of about 122,000 square meters, making it the largest mall in Israel by size. The new floor, which includes brands like Victoria's Secret, Toys "R" Us, and Flying Tiger, was developed with an investment of roughly 100 million shekels (approximately $27 million).

The mall's ownership structure has also recently changed. The Gindi family exited its stake after over three decades, leaving Migdal Insurance as the sole owner. This follows Migdal's acquisition of the remaining 25% of the mall for approximately 840 million shekels (around $225 million) about three months ago. This total acquisition price, combined with the new floor, values the mall at approximately 2 billion shekels ($540 million).

While the Golden Mall is now the largest in Israel by area, its economic value is being compared to other major malls. Some smaller malls are valued higher due to stronger sales per square meter and higher rental yields. Migdal's investment in the new floor aims to leverage the mall's size to increase revenue through additional rent, customer traffic, and overall appeal.

An earlier deal that would have seen Melisron acquire a 51% stake in the mall for 818 million shekels (about $220 million) and manage it was ultimately canceled due to concerns from the Israel Competition Authority. This left Migdal with full ownership, a situation that requires active management of tenant mix, marketing, and leasing, areas where Melisron specializes.

Despite the shift to online shopping, major malls are proving resilient by offering diverse experiences including dining, entertainment, and services alongside retail. The success of the Golden Mall's expansion will ultimately be measured not just by its size, but by its ability to generate increased revenue per square meter, potentially narrowing the valuation gap with other prime Israeli malls.