Menora Mivtachim Acquires 6.57% Stake in Hagag Group in NIS 20M Deal

Menora Mivtachim Holdings has increased its stake in Hagag Group, becoming a substantial shareholder with 6.57% of the company's share capital, up from approximately 4.95%. According to a notification submitted to the Tel Aviv Stock Exchange, the institutional investor acquired one million shares at a price of NIS 20.42 per share, bringing the total transaction value to approximately NIS 20 million.

This move highlights a broader trend of institutional investors aggressively increasing their exposure to the Israeli real estate sector. Over the past year, major institutional players have continued to pour capital into real estate and urban renewal projects, driven by the sector's long-term growth potential and relative stability compared to other asset classes.

Hagag Group has recently reported robust commercial momentum. During the first eight months of the year, the company marketed 231 housing units across its development and urban renewal portfolios, encompassing 163 signed contracts and 68 purchase requests with a combined value of roughly NIS 1.36 billion. Average prices in the development segment rose to NIS 7.1 million per unit.

Among its flagship ventures, the FIRST project on Sde Dov recorded strong demand, selling 42 housing units worth over NIS 339 million from the beginning of the second quarter until the release of financial reports. In addition, the group recently completed a landmark luxury transaction, selling a penthouse in the Infinity Tower at the corner of Ibn Gabirol and Jabotinsky streets for NIS 55.55 million to an American buyer.

Commenting on the milestone, Hagag Group's co-CEOs and controlling shareholders, Tzachi and Ido Hagag, stated that Menora Mivtachim's entry as a substantial shareholder is a clear expression of confidence in the group's corporate strategy and the high quality of its real estate projects.