Hakishor: How Much Of The Value Is Real, And How Much Still Depends On Financing

Hakishor looks more mature on paper than in financing

The main article framed 2026 as a year that will separate genuine project progress from the funding gap that still hangs over the balance sheet. Hakishor is the clearest place where that distinction matters. On paper it already looks like a large, advanced project: Hakishor 4 and Hakishor 6 have been combined into a single plan, the project is now defined around meaningful logistics and commercial space, the seller mechanics were amended, and there is even a conditional NIS 125 million sale agreement.

But that is still not the same as accessible value. At year-end 2025 there was still no meaningful marketing, no contractor agreement, no disclosed net realizable value estimate, and short-term debt at both the Hakishor 4 and Hakishor 6 layers was still due on March 31, 2026. So this is not a question of whether there is a project here. There is. The real question is when that project value can move from an attractive planning and economics story into something that banks will fund, debt can be refinanced against, and shareholders can actually access.

The project got bigger, but it has not crossed into execution yet

Hakishor combines the plots at Hakishor 4 and 6 in Holon into a planned commercial and light-industry project with about 6,700 sqm of commercial space, about 29,300 sqm of logistics space, about 275 parking spaces for logistics uses, and an underground parking level with about 309 spaces. The company’s effective interest in the project is 50%, partly directly and partly through Migdal Hakishor, which is held equally with Panmara.

This is no longer just a land story waiting for a concept. The plot unification was approved, and in September 2025 the committee granted a conditional permit for demolition, shoring and excavation. At the same time, the full building permit application was still only in preparation and is expected to be submitted in 2026. That matters because Hakishor has clearly advanced, but it still has not crossed the line at which the bank, the buyer and the market can treat it as an execution-ready project.

The rest of the disclosure says the same thing. The company itself expects construction and marketing to begin in 2026, with completion and the end of marketing in 2029. There are still no contractor agreements, and meaningful marketing had not yet begun by year-end. In other words, the scale is there, but the conversion from scale into execution is not.

There is also an important transition point inside Hakishor 6 itself. The site still contains a building leased to a single tenant, generating annual rent of about NIS 1 million linked to CPI. The lease can be terminated on eight months’ notice, and such notice has already been delivered so the lease is set to end on May 7, 2026. That means the asset is still producing rent today, but to become a project it first has to stop being a rental asset. Between an income-producing property and an execution site, there is an operational and financing bridge, not just a planning bridge.

The seller terms create a floor, not immediate cash

The most important economic change at Hakishor is the August 2025 amendment to the Hakishor 4 combination agreement. Under the original structure, the seller was supposed to receive physical office and commercial area. Under the amendment, the project is now meant to be realized together with Hakishor 6, and the seller becomes entitled to 12.1% of total proceeds from unit sales, but not less than a NIS 60 million minimum consideration.

That is a major shift because it makes the arrangement more cash-based and less dependent on delivering built area. But timing matters more here than the headline number. Out of the NIS 60 million minimum, NIS 4 million was paid when the amendment was signed, NIS 25 million is payable only when a project financing account is opened, and the remaining NIS 31 million is payable in six equal quarterly installments starting from the quarter after financing opens. In addition, Migdal Hakishor paid the seller about NIS 7.66 million at signing, and until the financing agreement is signed it also pays NIS 70,000 per month.

That chart is the core of the read. The NIS 60 million floor is real, but it is not sitting in cash today. Most of it still sits behind one event that has not happened yet: opening project financing. Anyone who treats the minimum consideration as if it were already equivalent to liquidity is skipping the hardest step in the chain.

There is another layer here as well. The seller still has loans outstanding, with a balance of about NIS 14.6 million at year-end 2025, and those loans are supposed to be repaid under the financing framework by the time the project’s rights are fully sold. Until that repayment happens, Migdal Hakishor bears half of the interest expense on those loans. So even after the seller mechanics were amended, the seller relationship did not disappear. It was simply converted from a built-area mechanism into a cash, financing, interest and timing mechanism.

And that is not the end of it. If rights remain unsold 12 months after occupancy approval, the seller can take relative ownership in those rights or require Migdal Hakishor to purchase the remaining share based on an appraisal. That is another reminder that the seller economics do not end at the signing date. They stay embedded in the project through realization.

The NIS 125 million sale is a signal, not financing

Alongside the seller amendment, Migdal Hakishor, the company and Panmara also entered into a conditional agreement with a third party to sell about 6,700 sqm of commercial and storage space, plus basement areas including about 304 parking spaces and storage areas, for total consideration of NIS 125 million. It is easy to get drawn to that number, and for good reason. It suggests that a third party is willing to look at this project on a serious scale.

But at year-end 2025 the disclosure still needs to be read carefully. Some of the conditions were not met by the required deadline, the buyer has the right to cancel the agreement, and no proceeds had yet been paid. In other words, the NIS 125 million is much closer to proof of interest than proof of liquidity.

That gap matters even more because the company also says meaningful marketing had not yet started. So the conditional transaction cannot be treated as a substitute for project financing, or as cash that effectively arrives ahead of financing. At most, it validates that the intended project use and scale are not detached from market demand. That matters, but it does not solve the funding problem.

The March 2026 refinancing wall is still there

This is where Hakishor stops being mainly a planning story and becomes a banking story. At the Migdal Hakishor level there is NIS 18 million of short-term bank credit, at prime plus 1.5%, with principal due on March 31, 2026. There is no unused credit line left. The debt is backed by a first-ranking mortgage on Hakishor 4, by charges over rights in the land and in the project, and by guarantees from the company and Panmara up to NIS 22 million. The company and Panmara are also jointly and severally liable on that obligation.

At the Hakishor 6 layer the picture is similar, and arguably sharper. The company and Panmara jointly took a NIS 40.12 million loan on March 30, 2023, of which the company’s share is NIS 20.06 million. Here too the interest rate is prime plus 1.5%, and the maturity is March 31, 2026. The loan is secured by the land, and every collateral package granted to the bank by either borrower or by Migdal Hakishor also secures this debt. In other words, the collateral layers are tied together.

The figures in that chart are not meant to be added together mechanically, because they sit at different layers of the project. But they do map the issue correctly: Hakishor is not waiting only for a higher valuation or a signed sale. It is waiting for actual bank work. The company says it intends to replace the Hakishor 6 loan with financing to be provided under the project financing agreement, and until the project starts it also intends to extend the loan. Management and the board estimate that the extension request will be approved. That may well happen. But as of December 31, 2025 it was still an intention, not an executed refinancing.

And that is the line between project value and bankable value. As long as the loans stay short-term, and as long as the financing account has not been opened, both the seller amendment and the NIS 125 million transaction remain dependent on a financing provider willing to turn this structure into a workable capital stack.

Where the value sits, and why it is not yet fully accessible

The cleanest way to see that gap is through Migdal Hakishor itself. At year-end 2025 it had assets of NIS 37.245 million, including NIS 22.619 million of real-estate inventory and NIS 14.596 million of loans granted. Against that sat NIS 39.543 million of liabilities, including NIS 20.714 million of related-party loans and NIS 18 million of short-term bank debt. The result was a deficit balance of NIS 2.298 million and a 2025 loss of NIS 0.876 million.

So Migdal Hakishor holds a real project and real assets, but it still does not hold surplus equity that can be presented as liquid, accessible value. That also explains why the carrying value of the company’s investment in Migdal Hakishor, NIS 15.268 million, is built almost entirely on a shareholder loan of NIS 16.417 million, while the equity layer itself is negative. The company also increased shareholder loans to Migdal Hakishor during 2025.

That does not mean there is no value here. Quite the opposite. The project is now bigger, clearer and more ambitious. The seller economics are materially improved, and there is evidence that a third party is willing to place a large headline value on a meaningful slice of the project. But at year-end 2025 most of that value still sits at the project, inventory, shareholder-loan and conditional-agreement levels. To become accessible value for shareholders, it still has to pass through financing, debt extension and real progress from demolition and excavation into marketing and execution.

Bottom line

Hakishor is not a mirage, but it is not a shortcut either. What already exists deserves attention: merged plots, a more advanced planning path, a seller floor, and a commercial conversation at the NIS 125 million level. But every one of those elements still runs through one gate that has not fully turned yet, financing.

So the right question is not whether Hakishor creates value. It is when that value will move from project value into financeable and capturable value. Until then, Hakishor will remain the asset that looks most impressive on first read, and the one where the fine print matters most.