Israel's Melisron company acquires Harel Mall as part of debt settlement

The Melisron company controlled by Liora Ofer is on a roll. It recently completed the addition of a floor to the Ramat Aviv Mall, and with the newly-announced purchase of Harel Mall, Melisron owns 18 malls. 

The deal was part of a complex debt settlement carried out as part of a mediation that includes payment of the mall's debts. In 2013, an agreement was signed to sell the mall, but the deal fell through. The current mediation arrangement also received the approvals of the Israel Competition Authority and Tax Authority.

Melisron will pay NIS 32 million to third parties and the Tax Authority for tax debts accrued by the mall's previous owners. At the same time, it will deduct the balance of loans it previously extended to the Harel Mall company, which totaled NIS 157 million, from its books. 

As part of the sale, Melisron and the Harel Mall company will pay a negligible amount of taxes.

The Harel Mall

In 2022, Harel Mall generated an operating profit of NIS 15 million. The mall includes 11,600 square meters of commercial space and recently a plan was approved for the addition of 9,500 square meters of building rights for commercial, employment and residential purposes along with public institutions.

Turnover in the mall increased by 23% in the last year compared to the period before COVID-19. Recently, a move was made to upgrade the mix of stores, and new food brands were introduced such as Aroma, Landwer and Golda. 

CEO Ofir Sarid said that this sale is a continuation of the implementation of Melisron's development strategy to expand the portfolio of commercial properties in neighborhood malls in sought-after locations with growth potential.