Migdal Acquires Gindi Family's 25% Stake in Rishon Lezion's Kanyon Hazahav for NIS 840 Million

Israeli insurance giant Migdal is purchasing the Gindi family's 25% stake in Kanyon Hazahav, a major shopping mall located in Rishon Lezion, in a deal valued at approximately 840 million shekels. Kanyon Hazahav was originally developed in the early 1990s by brothers Moshe and Yigal Gindi. Migdal had previously acquired a 75% share in the mall nearly 20 years ago for one billion shekels. Around a year ago, Migdal signed an agreement to sell 51% of the mall to Melisron Group for 818 million shekels, potentially valuing the mall at about 1.5 billion shekels, though this transaction has not yet received official approval from the Israeli Antitrust Authority.

The current acquisition involves three floors of the mall, including the basement level undergoing renovation. In April, Tal Gindi, Moshe Gindi's daughter and the mall's effective manager, revealed plans for significant upgrades, including a 180 million shekel refurbishment of the glass facades and the launch of a new "Platinum Floor" featuring flagship stores of leading Israeli fashion groups such as Delta and Fox. This new floor is in advanced construction stages and is expected to open to tenants during the upcoming summer.

Additional development plans include a new food court with restaurants and cafes, as well as a zoning plan amendment that would allow the construction of a new office tower within the mall complex. Kanyon Hazahav has established itself as a strong regional player with high occupancy rates and some of the highest rental terms in the industry. The potential entry of Melisron as a major owner remains pending regulatory approval due to its significant presence in the central Israel mall market. Neither Migdal nor the Gindi family have officially commented on the latest transaction.