Menora Mivtachim Becomes Major Stakeholder in Hagag Group
Translated & summarized from Ice by baba
Menora Mivtachim Insurance Group has become a significant shareholder in Hagag Group after increasing its stake to 6.57% through a NIS 20 million share purchase. This investment reflects a broader trend of institutional investors increasing their real estate holdings. Hagag Group has reported strong sales, including a recent penthouse sale for NIS 55.5 million. The Hagag brothers view Menora Mivtachim's investment as a vote of confidence in their company.
The story in 5 lines · by baba
- Menora Mivtachim increased its stake in Hagag Group to 6.57% for approximately NIS 20 million.
- The investment signifies institutional confidence in Hagag Group's strategy and projects.
- Hagag Group reported NIS 1.36 billion in sales from 231 housing units this year.
- A penthouse in Hagag's Infinity project was sold for a record NIS 55.5 million.
- Institutional investors are increasingly focusing on the real estate and urban renewal sectors.
Menora Mivtachim Insurance Group has increased its stake in Hagag Group, becoming a significant shareholder. The insurance giant raised its holding from approximately 4.95% to about 6.57% of the real estate group's shares by purchasing one million shares at NIS 20.42 each, a transaction valued at roughly NIS 20 million. This move aligns with a broader trend of institutional investors, including other major insurance and retail companies like Migdal, Rami Levy, and Yohananof, increasing their investments in the real estate sector.
Menora Mivtachim has been actively investing in urban renewal projects, committing hundreds of millions of shekels in recent years. The company believes this segment of the market is less volatile and poised for growth, already accounting for about a third of the total real estate market. Last year, Menora Mivtachim agreed to invest up to NIS 200 million in six residential projects developed by Hachsharat HaYishuv.
Hagag Group reported strong sales performance in the first eight months of the year, marketing 231 housing units worth approximately NIS 1.36 billion. This includes 163 signed contracts and 68 pending applications. The average price for a developed unit rose to NIS 7.1 million, up from NIS 5.2 million in the first quarter. The group also recently sold a penthouse in its Infinity project for NIS 55.5 million, one of the most expensive real estate deals in Israel in recent years.
In response to Menora Mivtachim's increased investment, Tzachi and Idan Hagag, co-CEOs and controlling shareholders of Hagag Group, stated that the move is a clear expression of confidence in their company, its strategy, and the quality of its projects, recognizing the value and growth potential of the group.