Gindi Brothers Sell Remaining Stake in Israel’s Kanyon HaZahav for NIS 840 Million
Moshe and Yigal Gindi have sold their remaining 25% stake in Kanyon HaZahav, a major shopping mall in western Rishon LeZion, to Migdal Insurance Group for NIS 840 million. The deal includes NIS 400 million for their quarter share of the mall and an additional NIS 440 million for a new floor still under construction, which the Gindis fully owned. This transaction values the entire mall at approximately NIS 2.04 billion, a relatively low valuation compared to other malls in Israel, such as Ramat Aviv Mall, valued at NIS 3.2 billion despite being much smaller in size.
Migdal initially acquired 75% of the mall in 2008 from the Gindis for NIS 1 billion. In September 2023, Migdal and the Gindis signed a conditional agreement with Melisron, Israel’s largest mall operator, to sell 51% of the mall for NIS 818 million, valuing it at NIS 1.64 billion. However, the Competition Authority is expected to decide soon whether to approve Melisron’s acquisition, which the Gindis and Melisron both doubt will be approved, leading the Gindis to exit the property.
Kanyon HaZahav, established in 1993, spans 110,000 square meters with over 400 tenants and recently underwent a multimillion-shekel renovation adding 30 new tenants. Despite the sale, a legal dispute remains over the development of the new "Platinum" floor, with the Gindis’ luxury apartments company suing Migdal for NIS 800 million, alleging interference in plans to establish a food market there. The case has reached the Supreme Court and will continue with a hearing next month.
Moshe Gindi described the sale as a good deal for both parties and indicated the family will refocus on real estate development and construction. Migdal, which manages assets worth about NIS 600 billion, currently holds Kanyon HaZahav as its only direct mall investment. The mall’s valuation remains below top-tier Israeli malls, reflecting market challenges and regulatory hurdles.
Summary: The Gindi brothers sold their remaining 25% stake in Kanyon HaZahav mall to Migdal for NIS 840 million, valuing the mall at NIS 2.04 billion. The sale follows doubts about regulatory approval of a Melisron acquisition and includes ongoing legal disputes over new floor development. The Gindis plan to return to real estate development after exiting the mall business.
