Azrieli Group covers multi-million deficit at the expense of tenants

A storm is brewing in the retail sector: shop owners and chains operating in Azrieli Group malls, owned and managed by Dana Azrieli, were surprised to find additional charges of tens of thousands of shekels in their latest payment demands, over and above their current fees.

This unusual demand is not related to standard rent, but is intended for one purpose: covering accumulated deficits recorded by the group's mall management companies. As revealed this Monday, the group's management companies—responsible for operations, security, and ongoing maintenance—finished 2025 with an expenditure surplus of millions of shekels.

Among the prominent complexes that finished the year in deficit are:

1. Azrieli Tel Aviv Mall: approximately 2.5 million shekels

2. Malha Mall in Jerusalem: approximately 1.5 million shekels

3. Holon Mall: approximately 1.4 million shekels

The group decided to roll these financial gaps directly onto the tenants, relying on clauses within their management agreements.

This step is causing significant anger among business owners, particularly in the small and medium-sized tiers. Tenants complain about a complete lack of transparency in the management companies' bookkeeping, noting that shop owners have no way to verify how actual expenses were calculated.

Furthermore, there are serious allegations of unequal collection: while large "anchor" chains often receive significant discounts on management fees to attract them to the mall, the burden of covering the deficit falls on small and medium-sized businesses, which are effectively financing the benefits of the larger players.

On the other hand, the Azrieli Group clarifies that it operates with transparency and in accordance with signed contracts. According to the group, the management fees reflect the high level of service in the properties, and the increase stems from the general rise in operating costs in the economy, including electricity, cleaning, security, and wages.