Azrieli Group

Azrieli Group’s principal activity is the development, construction, acquisition, management, and leasing of income-producing real estate. Its portfolio spans shopping centers, office towers, senior and rental housing, residential development, hotels, overseas offices, and European data centers. Its shares trade on the Tel Aviv Stock Exchange under AZGR:IT, and the company is included in the EPRA index.[1][2]

As of June 30, 2026, the Group reported approximately 1.466 million square meters of gross leasable area attributable to the company, excluding data centers, and a development pipeline of about 650,000 square meters. Total assets were approximately NIS 65.9 billion, investment property and investment property under construction totaled about NIS 52.9 billion, and net debt was approximately NIS 24.2 billion. Cash, deposits, and short-term investments totaled about NIS 4.5 billion, while unencumbered assets totaled about NIS 40 billion.[2][6]

Azrieli Group was founded by David Azrieli, a Polish-born architect, property developer, and philanthropist whose career connected Israel and Canada. He escaped the Nazi invasion of Poland in 1939, traveled east through Central Asia, and reached British Mandate Palestine in late 1942. He studied architecture at the Technion from 1943 to 1946 and served in Israel’s Seventh Brigade during the 1948 War of Independence.[7][3]

Azrieli moved to Montreal in 1954 and entered real-estate development in the late 1950s. In 1958 he built four duplexes in a Montreal suburb, a project described as the beginning of Canpro Investments. Canpro grew into a major development company with commercial holdings across North America and Israel.[7]

The Group’s quarterly report states that it was established in 1983, while Calcalist describes it as founded in 1982.[2][8] The company dates the opening of Canion Ayalon, Israel’s first enclosed shopping center, to 1985, whereas Globes reports that Ayalon Mall opened in 1982.[3][9]

David Azrieli coined the Hebrew word “canion” for a mall by combining the Hebrew words for shopping and parking.[3] Ayalon Mall in Ramat Gan became the Group’s first major project. In a 2008 interview, Azrieli recalled being shown a garbage dump that he transformed into the mall during a banking crisis and a period of exceptionally high inflation.[8][10]

The Group’s early business centered on malls and office buildings. Azrieli subsequently developed malls in Jerusalem’s Malha neighborhood and Beersheba—the latter described as the Negev’s first mall—before developing the Azrieli Center in Tel Aviv.[9] Work on the Center began in 1992, and its final phase was completed in 2008.[3]

The Israeli retail portfolio comprised 23 malls and retail centers with about 387,000 square meters of gross leasable area and approximately 1,850 tenants as of June 2026. Many are centrally located, accessible by public transportation, and near railway stations. Leading properties include Azrieli Jerusalem, Azrieli Tel Aviv, Azrieli Ayalon, and Azrieli Mall Hayam in Eilat.[2]

Ayalon Mall illustrates the scale of the retail properties. It has 33,520 square meters, 2,000 parking spaces, 190 tenants, and an average of 22,000 visitors per day. About three decades after opening, it added a 10,000-square-meter second floor that the company describes as Israel’s largest brand floor.[11]

The Group’s 17 income-producing Israeli office properties had approximately 655,000 square meters of gross leasable area and about 625 tenants. The portfolio consists mainly of Class A buildings in central business districts or near major roads.[2]

Occupancy rates at the end of June 2026 were approximately 99% in Israeli malls and retail centers, 96% in Israeli offices, 97% in senior housing, 64% in U.S. income-producing properties, 99% in data centers, and 97% in Israeli rental housing. The figures exclude certain properties in initial lease-up, and the data-center calculation excludes space under construction.[2]

Portfolio figures vary with their dates and definitions. A 2022 account counted 19 malls, while an October 2026 report described a nationwide network of 15 major shopping malls and commercial centers. Those formulations are not directly comparable with the June 2026 company total of 23 malls and retail centers.[12][13]

David Azrieli was the Group’s founder and controlling shareholder.[9] His daughter Danna Azrieli later assumed a central leadership role. A 2007 report described her as a vice president of the Group’s shopping-mall and real-estate business and noted that she had managed the American branch of Canpro Investments before moving to Israel. It also reported that she had been involved with Shenkar since 2004 and had been named head of its Board of Governors.[14]

David Azrieli lived from 1922 to 2014. Danna Azrieli became chairperson in 2014 and led the expansion from commercial property and offices into data centers, senior housing, rental housing, hotels, and residential development.[15][4]

In February 2026, the board appointed Danna Azrieli as CEO after she had served for six months as acting CEO while remaining chairperson. She assumed the position on March 22, 2026, when Irit Sekler-Pilosof became chairperson. Ynet reported that the previous CEO, Ran Avidan, had left after four months amid disagreements with Azrieli.[15][16]

Annual net operating income increased from NIS 1.1 billion in 2014 to more than NIS 2.5 billion in 2025. By 2026, data centers—an activity entered in 2019—had become the Group’s third-largest field, with assets valued at about NIS 12 billion, or 18% of total assets.[4] For 2025, data-center NOI reached NIS 449 million, up 95% from 2024 and nearly one-fifth of total NOI. Net profit was NIS 1.9 billion, 27% above 2024.[17]

In the second quarter of 2026, NOI was approximately NIS 651 million, compared with NIS 648 million a year earlier; excluding exchange-rate effects, it increased by 4%. Net income fell from NIS 320 million to approximately NIS 155 million, primarily because of lower investment-property revaluation gains. Tenant sales rose about 8.3%, and first-half investments in Israeli properties and overseas data centers totaled approximately NIS 1.7 billion.[6]

The company had distributed NIS 8.2 billion in dividends since its 2010 initial public offering as of June 2026.[2] Published valuations for the offering differ: Calcalist gives NIS 10.6 billion, while Globes reports an approximate post-offering valuation of NIS 9.5 billion and proceeds of NIS 2.01 billion.[4][18]

The Azrieli Center in Tel Aviv is among the Group’s best-known developments. The complex combines skyscrapers with a shopping mall at their base. Israeli-American architect Eli Attia prepared the initial design; after a falling-out with David Azrieli, Moore Yaski Sivan Architects completed it.[5]

The site covers 34,500 square meters and had previously served as a parking area for Tel Aviv garbage trucks. The development, reported to have cost $350 million, was credited with revitalizing the area.[5]

Construction of the Circular and Triangular towers began in 1996 and was completed in 1999. The Circular Tower is 187 meters tall and has 49 floors, with 84 windows on each floor and more than 4,000 in total. The Triangular Tower is 169 meters tall; Bezeq was identified as its main occupant, using 13 floors.[5]

Construction of the Square Tower was halted in 1998 amid urban-planning disagreements and resumed in 2006. Completed in June 2007, it rises 154 meters across 42 floors. A hotel occupies its lower 13 floors, with offices above.[5]

The first annual Azrieli Circular Tower run-up competition was held on October 31, 2003. Participants climbed 1,144 stairs to the roof, and the winners were eligible to compete the following year in the Empire State Building run-up in New York.[5]

The planned Spiral Tower is adjacent to the existing Tel Aviv complex. It is designed to combine retail, offices, hospitality, and residences, with approximately 150,000 square meters of marketable area and estimated completion in 2028. As of June 2026, the company was continuing to seek necessary approvals and permits following an increase in zoning rights.[2]

Other development plans have included projects in Modi’in, Holon, Petah Tikva, and Eilat. A 2022 report listed Azrieli Holon 3 and developments in Modi’in, Petah Tikva, and Eilat, but those reported plans did not by themselves confirm later completion.[12]

Azrieli Group began diversifying its overseas income-producing property investments in 2001 and later acquired office buildings in Houston and Austin, Texas. By June 2026, it held eight overseas income-producing properties, mostly in the United States, with approximately 245,000 square meters of gross leasable area attributable to the company. Houston occupancy had moderately recovered in some areas, while Austin office occupancy remained historically low amid new supply and reduced demand from technology tenants.[2]

The move into data centers began in 2019 with a $135 million purchase of a 20% stake in Compass Holdco and an option to raise the holding to 33% by the end of 2020. Compass then had 10 active sites and three under construction or development, mainly in the eastern and central United States and Montreal. Azrieli had studied the sector for two years and considered it compatible with its investment strategy.[19]

In 2021, Azrieli agreed to acquire Norwegian data-center operator Green Mountain. Globes gave a price of NIS 2.285 billion, while later coverage used NIS 2.8 billion. Green Mountain, founded in 2009, operated three Norwegian server farms, had potential development capacity of 520 megawatts, and used renewable electricity.[20][21]

In 2023, the Group agreed to sell its 32.5% Compass stake in a transaction valuing Compass at $5.7 billion. The announced price for Azrieli’s stake was about NIS 3.2 billion, with an expected pretax gain of approximately NIS 1.3 billion. CEO Eyal Henkin said the investment had returned 2.5 times its value over 2.3 years.[21]

The Group liquidated its Compass holdings in 2023, acquired English data-center companies that year, and concentrated its European holdings under Green Mountain Global. By June 2026, the segment included five income-producing properties: four in Norway and an operating campus in East London.[2]

Hospitality expansion began with the Mount Zion Hotel in Jerusalem, purchased for NIS 275 million and acquired on February 9, 2020. The company renovated and expanded the property and signed a management agreement with Kempinski in 2025. An earlier plan contemplated increasing it from 137 rooms to 400 and adding about 380 underground parking spaces. The Group also acquired Eilat’s Red Rock Hotel in 2023, while a hotel in its Modi’in West development opened in 2025.[2][22]

Residential development expanded through Z.M.H. Hammerman. Azrieli announced in August 2024 that it would acquire a 67% stake at a valuation of NIS 870 million; the transaction closed on September 9, 2025, leaving Azrieli with 66.67% of the share capital. By June 2026, the company was involved in 27 residential and retail projects and 28 conditional urban-renewal projects, encompassing 5,081 apartments and 50,126 square meters of retail space.[23][2]

The senior-housing business began with the acquisition of land in Modi’in in 2014 and the purchase of the operating Palace Tel Aviv home in 2015. By June 2026, five Palace homes comprised about 1,415 units and approximately 145,000 square meters of above-ground built area. The rental-housing segment had three income-producing properties totaling approximately 34,000 square meters, with buildings in Tel Aviv and Modi’in and a project under development in Glil Yam, Herzliya.[2]

David Azrieli described the malls as an effort to change Israel’s shopping experience through clean, air-conditioned environments, improved displays, and service. Recalling Ayalon Mall’s opening, he said customers picked up candy wrappers and cigarette butts discarded by others, which he regarded as evidence that people respected a clean environment.[10]

He also emphasized employment generated by mall-related businesses, including part-time work for students and housewives. He described the company as conservative about borrowing and expansion, placing that approach in the context of the banking crisis and high inflation surrounding Ayalon Mall’s development.[10]

The Group’s properties also function as prominent public spaces. In October 2024, FDD reported that Israeli authorities had uncovered at an early stage an alleged plot to bomb a mall in Tel Aviv’s Azrieli Towers. FDD quoted the authorities as saying the arrests “prevented a major disaster and saved lives.”[24]

Azrieli Group was among the entities assisting the Comfort Object initiative, founded after October 7 by five women to restore belongings rescued from homes in western Negev communities. Its first family, from Kibbutz Be’eri, recovered a half-burned and warped Ikea bench from their home; artist Maya Gal restored it, and it was placed in the family’s temporary home in Kibbutz Hatzerim.[25]

Danna Azrieli and fashion historian and curator Ya’ara Keydar established the planned Tel Aviv Fashion Museum at Azrieli Sarona. The three-floor project was intended to present exhibitions, promote Israeli designers, and develop international cultural relationships, with an opening planned for early 2027.[13]

In 2019, Azrieli was described as the largest income-producing real-estate company on the Tel Aviv Stock Exchange, with 17 shopping malls, 14 Israeli office properties, three assisted-living facilities, and eight overseas office properties. It also had 10 projects in development and design and eight expansion or upgrade projects.[19]

A 2022 snapshot counted 19 malls, 17 Class A office buildings, four retirement complexes in Israel, and eight overseas office buildings. It reported 1.4 million square meters of leasable property, total assets of NIS 43.7 billion, and a development pipeline of 0.7 million square meters. Second-quarter profit was NIS 803 million, NOI was NIS 473 million, and a NIS 650 million dividend had been issued in May.[12]

By June 2026, total assets had reached NIS 65.9 billion, and the portfolio combined Israeli retail and office properties with senior housing, rental homes, hotels, residential projects, overseas offices, and European data centers. The development pipeline was approximately 650,000 square meters.[2]

Danna Azrieli’s appointment as CEO, the continuing Spiral Tower approval process, initial occupancy at Palace Rishon LeZion, development of rental housing at Glil Yam, and the completed Z.M.H. Hammerman acquisition reflected the Group’s contemporary expansion priorities.[15][2]

Azrieli Group’s history is closely associated with the introduction and spread of enclosed shopping malls in Israel. The company identifies Ayalon Mall as the country’s first enclosed shopping center, while Globes credits David Azrieli with bringing the shopping-mall model to Israel and subsequently developing malls in Jerusalem and Beersheba.[3][9]

The company’s evolution from malls and offices to data centers, senior housing, hotels, rental housing, and residential development reflects a broadening of its property business. Its projects encompass shopping and work environments, residential and senior living, hospitality, and digital infrastructure.[1][2]

The Azrieli Center exemplifies the Group’s role in mixed-use urban construction. Its towers, retail base, and planned Spiral Tower expansion combine commercial, hospitality, residential, and public-facing functions, while the company’s other operations extend across Israeli cities and overseas markets.[2][5]

Azrieli.com, the Group’s e-commerce site launched in 2016, closed at the end of December 2023 after an estimated cumulative loss of NIS 300 million. Approximately 70 employees worked on the site; most were expected to be laid off, while some were reassigned. The Group cited insufficient local demand, competition from international websites, and Israeli regulations that it considered more favorable to overseas retailers.[26]

Sources differ on foundational dates. The company identifies 1983 as its establishment year, while Calcalist gives 1982.[2][8] The company dates Ayalon Mall’s opening to 1985, whereas Globes reports that it opened in 1982.[3][9]

The reported valuation at the 2010 stock-market offering also differs. Calcalist gives NIS 10.6 billion, while Globes reports an approximate post-offering valuation of NIS 9.5 billion. The available sources do not reconcile the figures.[4][18]

Portfolio totals must be read with their dates and definitions in view. The 2022 count of 19 malls and the October 2026 description of 15 major malls and commercial centers use different wording and cannot be directly compared with the company’s June 2026 count of 23 malls and retail centers.[12][13]

The reported 2024 Tel Aviv mall plot rests on statements attributed to Israeli authorities and was described as having been foiled at an early stage.[24] The Fashion Museum’s early-2027 opening was a future plan at the time of publication, not confirmation that it had opened.[13]