Migdal Acquires 20% Stake in Ashtrom Rental Housing for 451 Million Shekels

Ashtrom, one of Israel's leading companies in the housing sector, has signed a binding memorandum of understanding with Migdal Insurance and Finance to bring Migdal in as a partner in its long-term rental housing operations. Under the agreement, Migdal will acquire 20% of the rights in Ashtrom Rental Housing for approximately 451 million shekels. This valuation is based on a net asset value of 2.26 billion shekels, according to Ashtrom Rental Housing's financial reports as of the end of the first quarter of 2026.

Ashtrom currently holds over 3,200 housing units at various planning and execution stages. Its key long-term rental projects include Neve Ofer and Hamishtala in Tel Aviv, Neve Ayalon in Or Yehuda, Kiryat HaYovel in Jerusalem, and Neot Peres in Haifa. Additionally, the company is planning the Shikun HaRofe'im project near Tel Hashomer, which will feature 1,189 housing units.

This strategic partnership marks a significant development in Israel's rental housing market, highlighting the growing interest in long-term residential leasing projects. The deal reflects the increasing value and scale of rental housing initiatives in major Israeli cities, particularly Tel Aviv.