Melisron Plans Major New Shopping Mall in Jerusalem Challenging Azrieli's Dominance
Melisron, Israel's leading shopping mall operator controlled by the Ofer family, is set to enter the Jerusalem market for the first time with plans to build a large shopping mall. The proposed mall will cover approximately 35,000 square meters on land in the Arnona neighborhood near the Armon Hanatziv promenade, on Daniel Yanovsky Street. In July, Melisron acquired 75% of the rights to this 29-dunam (about 7.2 acres) plot from brothers Tzahi and Chen Neuman for 247.5 million shekels, with an additional conditional payment of 120 million shekels contingent on approval of a new urban building plan (Taba) that would allow expanded commercial use. Currently, the land is zoned for residential and hotel use, but Melisron intends to promote a new plan to enable the mall's construction. If the plan is not approved, the company will pursue a residential project instead.
This move marks a significant expansion for Melisron, which currently operates 18 malls across Israel with nearly full occupancy and managed retail space of about 542,000 square meters. The company recently withdrew from a deal to acquire half of the control of the Azrieli Group's Kanyon Hazahav in Rishon Lezion due to anticipated opposition from the Israeli Competition Authority, which cited Melisron's strong presence in central Israel. The new Jerusalem mall will directly compete with Azrieli's Malha Mall, the city's largest with 44,000 square meters and about 250 stores, as well as other local malls like Ramot Mall and Hadar Mall.
Melisron's recent financial reports show strong performance, with a 15.1% revenue increase in the second quarter to 551.7 million shekels and an 11% rise in mall sales, despite a 33% drop in net profit due to real estate revaluations. The company has invested heavily in upgrading its existing malls, including the Kiryat Bialik "Kiryion" mall, which now serves 25,000-30,000 visitors daily and has a property value of about 3.1 billion shekels. Melisron's strategy focuses on large malls anchored by flagship stores, a strong fashion retail mix, and expanding culinary and entertainment options.
Jerusalem's municipality has welcomed the planning initiative in principle but noted that further detailed planning review is required. The Neuman brothers, who sold the land to Melisron, have a long history of real estate development in the city, including a nearby large residential project with 1,830 apartments. If approved, the new mall will intensify competition in Jerusalem's retail market and mark Melisron's strategic entry into the capital's commercial landscape.
