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

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Melisron is set to build a 35,000-square-meter shopping mall in Jerusalem's Arnona neighborhood, challenging Azrieli's dominant Malha Mall. The company purchased land in July 2026 and seeks to rezone it for commercial use. This move marks Melisron's first entry into Jerusalem's retail market, intensifying competition with Azrieli, which plans to expand Malha Mall. Jerusalem's municipality supports the mixed-use development concept, pending further planning approval.

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Melisron plans a 35,000 sqm mall in Jerusalem's Arnona, entering the city retail market for the first time.
The company bought 29 dunams of land for 247.5 million shekels, with a conditional 120 million shekel payment.
Current zoning is residential and hotel, but Melisron seeks commercial rezoning for the mall.
The new mall will compete with Azrieli's Malha Mall, which has 44,000 sqm and 250 stores.
Azrieli has approval to expand Malha Mall, increasing future competition.
Jerusalem municipality welcomes the mixed-use proposal but requires further planning review.

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.

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