Clal Insurance Joins Migdal in Ashtrom Residential Venture

Ashtrom Group announced a significant development regarding its subsidiary, Ashtrom Residential for Rent. The parties involved in the major deal to sell 20% of the partnership's rights to Migdal Group have extended the period for fulfilling conditions by an additional 30 days, now set to conclude by December 11, 2026. Concurrently, Ashtrom revealed it is in advanced negotiations with another institutional entity, Clal Insurance, to sell approximately 20% more of the partnership's rights. These moves align with Ashtrom Group's broader strategy to bring in strategic partners and institutional investors for its income-producing real estate and residential rental operations, managed by CEO Shamai Kama. Such transactions are expected to significantly improve the group's debt ratios and enhance its financial flexibility, particularly during a challenging real estate market period that nonetheless sees stable demand for long-term rental housing. The anticipated entry of leading entities like Migdal and other institutional bodies will help diversify Ashtrom's risks and generate cash flow. Migdal, which recently acquired the Gindi brothers' stake in the Golden Mall in Rishon Lezion, is becoming a significant stakeholder in one of Israel's strong real estate companies. While primarily an insurance company, Migdal's real estate holdings are substantial. Ashtrom's agreement with Migdal marks the insurer's entry into the residential rental market, even amid relatively high interest rates, signaling confidence in the sector. Ashtrom emphasizes that the completion of the original deal with Migdal, as well as the progression of negotiations with Clal Insurance to a binding agreement, remain subject to various conditions precedent, regulatory approvals, and macroeconomic factors typical for deals of this magnitude.