Mor Investment House Joins Coalition Challenging Katzman Control at Orion Real Estate Board
Orion, a real estate company spun off from G City and publicly listed at the end of last year, is at the center of a new shareholder power struggle involving its largest stakeholders. While Haim Katzman contends with a battle over control of G City, a separate conflict is emerging at Orion, where a shareholder meeting is scheduled later this month to approve terms for CEO Sharon Zchut and chairman Eran Yaakov, as well as the reappointment of three directors aligned with G City.
A coalition holding 25.1% of Orion's shares, slightly more than Katzman's 24.4% stake via Norstar, is pushing to nominate four directors of its own. This move could shift the board's balance of power and reduce Katzman's influence. The coalition includes Mor Investment House, which holds 18.1% through pension funds, and the Habaita Living Group with 7%, alongside other institutional investors. Habaita Living, controlled by Uvav Carmi and Ariel Alejandro Prestman, has been in conflict with Orion's management for months, previously failing to secure board seats in June.
The coalition, now strengthened by Mor's participation following Orion's June share issuance, demands a vote on their nominees, including Carmi and Prestman, plus two additional candidates. If approved, Orion's nine-member board would comprise four directors from Mor and Habaita Living, three from G City, and two external directors. This upcoming vote is critical for Katzman, who previously enjoyed institutional support but now faces a formidable opposition bloc.
Orion was separated from G City in 2025, transferring three Polish shopping centers valued at 455 million euros. In Q1 2026, its net operating income remained stable at 7.9 million euros year-over-year, but its adjusted funds from operations swung to a loss of 944,000 euros from a 5.1 million euro profit the prior year, with leverage reaching 83%. Since its December listing, Orion's stock has dropped 35.5% to a market value of 94 million shekels, underperforming the Tel Aviv Real Estate Index's 9% decline.
Summary: Orion's shareholder dynamics are shifting as Mor Investment House and Habaita Living Group form a coalition to challenge Haim Katzman's control, seeking to appoint their own directors and alter the company's board composition amid financial and operational concerns.
