Melisron Advances Plans for Major New Shopping Mall in Jerusalem Challenging Azrieli

Melisron, a leading Israeli shopping mall operator controlled by the Ofer family, is preparing to enter the Jerusalem market for the first time by developing a large shopping mall. The company acquired a 29-dunam plot in the Arnona neighborhood near the Armon Hanatziv promenade, with plans to convert the land from its current residential and hotel zoning to commercial use for a 35,000-square-meter mall. Melisron purchased 75% of the land rights in July from the Neuman brothers for 247.5 million shekels, with an additional conditional payment of 120 million shekels contingent on approval of a new urban plan and achieving certain development milestones.

Currently, Melisron operates 18 malls across Israel with nearly full occupancy and reported retail revenues of 5 billion shekels in the first half of the year. The company had previously attempted to acquire a controlling stake in the Gold Mall in Rishon Lezion but withdrew due to anticipated opposition from the Competition Authority, which cited Melisron's strong presence in central Israel. The Jerusalem project marks Melisron's first significant foothold in the capital, where it identified a shortage of a major regional mall to compete with Azrieli Group's Malha Mall, which spans approximately 44,000 square meters and hosts around 250 stores.

Other notable malls in Jerusalem include the Ramot Mall (26,000 square meters) and Hadar Mall (20,000 square meters), while the Mamilla shopping promenade primarily serves tourists rather than local shoppers. Azrieli has recently received approval to expand Malha Mall with additional commercial, residential, and community uses, signaling intensified competition ahead. Melisron aims to replicate its successful strategy of large flagship stores, strong fashion retail, and growing food and entertainment offerings in Jerusalem.

The Neuman brothers, who sold the land, have a long-standing real estate presence in Jerusalem and are developing a large residential project nearby with 1,830 apartments. Jerusalem's city engineer acknowledged the mall initiative as a positive mixed-use development proposal but noted it requires further planning review. If approved, the new mall will create a significant new retail hub and heighten competition between two of Israel's largest mall operators in the capital.