Melisron Plans Major New Shopping Mall in Jerusalem to Compete with Azrieli Malha

Melisron, a leading Israeli shopping mall operator controlled by the Ofer family, is advancing plans to build a large new shopping mall in Jerusalem, marking its first entry into the city. The company purchased a 29-dunam plot in the Arnona neighborhood near the Armon Hanatziv promenade for 247.5 million shekels in July 2026, with an additional conditional payment of 120 million shekels pending approval of a new urban plan. Currently zoned for residential and hotel use, Melisron intends to promote a new plan allowing extensive commercial development to establish a 35,000-square-meter mall.

Melisron operates 18 malls across Israel with nearly full occupancy and generated 5 billion shekels in retail revenue in the first half of 2026. The company withdrew last month from acquiring a controlling stake in the Gold Mall in Rishon Lezion due to anticipated opposition from the Competition Authority, which cited Melisron's strong presence in central Israel. The Jerusalem project represents a strategic move to enter a market dominated by Azrieli Group's Malha Mall, which spans approximately 44,000 square meters and hosts around 250 stores. Other notable malls in Jerusalem include Ramot Mall (26,000 square meters) and Hadar Mall (20,000 square meters).

Melisron's new mall will introduce a competitor of similar scale to Malha, intensifying retail competition in Jerusalem. Azrieli has already received approval to expand Malha Mall with additional commercial, employment, senior housing, and community services. Melisron plans to replicate its successful strategy of large flagship stores, a strong fashion mix, and increased culinary and entertainment options. The land sellers, the Neuman brothers, have a long-standing real estate presence in Jerusalem and are developing a large residential project nearby.

Jerusalem's municipal engineering department described the mall initiative as a welcome mixed-use development proposal requiring further planning review. If approved, the project will transform Jerusalem into a key battleground between two of Israel's largest mall operators.