Melisron plans mall in Jerusalem to rival Azrieli

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Shopping mall giant Melisron (TASE: MLSR), controlled by the Ofer family, is planning to build its first mall in Jerusalem, "Globes" has learned. Melisron is planning a 35,000 square-meter mall on land in Arnona, near the Armon Hanatziv promenade on Daniel Yanovsky Street.

Melisron currently has 18 malls around Israel covering an overall 542,000 square meters with an occupancy of 99%. Store sales in the first half of 2026 were NIS 5 billion.

Instead of Kenyon Hazahav?

Last month, Melisron withdrew its bid to buy 51% of Kenyon Hazahav in Rishon Lezion from Migdal, following indications by the Israel Competition Authority that it would oppose the deal. According to market estimates, the reason for the opposition stemmed from the strong and significant presence of the Ofer Mall chain in central Israel, although Melisron tried to claim that they have no presence in the coastal plain region in general and Rishon Lezion in particular. -

Now, the company plans to establish its first foothold in the Jerusalem market. Last month, Melisron acquired 75% of the rights to land covering 29 dunams (7.25 acres) in Jerusalem from brothers Tzachi and Chen Neumann. Melisron paid NIS 247.5 million, and a further NIS 120 million contingent on approval of "a new urban development plan."

The zoning for the land is currently for apartments and hotels, but "Globes" has learned that Melisron intends to promote a new plan that will allow for the addition of commercial rights and uses on a large scale, on the basis of which the mall will be built. If the plan is not approved, the company intends to exercise the existing building rights and promote a residential project in its place. The deal itself has already been completed and ownership of the land has been handed over to Melisron, the company reported in its second-quarter reports.

No presence in Jerusalem to date

The entry into Jerusalem is a significant move for the Melisron Group, which has been absent from the capital of Israel to date. The company already owns some of the most successful malls in Israel, including Ramat Aviv, Kiryon in Kiryat Bialik, and Grand Canyon in Beersheva.

The company has identified the need for another major mall in Jerusalem. Today, the main anchor of the Jerusalem mall market is the Azrieli Group's Malha Mall, which has 44,000 square meters of commercial space with 250 stores and businesses. The second largest mall is the Ramot Mall on the outskirts of the city, owned by Phoenix and JTLV, with 26,000 square meters of commercial space. In addition, Hadar Mall operates in Talpiot with 20,000 square meters of commercial space and some 130 stores. Another commercial hub is the Mamilla strip mall, but its character is different from a classic mall and is designed primarily for tourists.

Melisron cancels deal to buy control of Kenyon Hazahav

Jerusalem Municipality commented, "The city engineer has been presented with a planning initiative to build a shopping mall as part of a mixed-use complex, intended for recreation, leisure, apartments, special housing, a park and public spaces. This is an initiative on an area of about 30 dunams under private ownership, located on a vacant lot by the Armon Hanatziv Promenade. The initiative is welcome in principle but requires further planning scrutiny."

Published by Globes, Israel business news - en.globes.co.il - on August 16, 2026.