Mimon Yesir Acquires Sigma City Real Estate Financing

Mimon Yesir, a prominent non-bank credit provider, is significantly expanding its real estate financing capabilities with the acquisition of Sigma City Real Estate Financing. The deal, valued at approximately 38 million shekels (around $9.5 million USD), sees Mimon Yesir secure an 85% stake in Sigma City, a company specializing in providing capital for residential construction projects in Israel. This strategic move diversifies Mimon Yesir's portfolio beyond its core consumer lending operations in auto loans and mortgages.

The transaction also includes an additional 29 million shekels (approximately $7.25 million USD) in owner loans from Mimon Yesir to Sigma City, bringing the total financial commitment to roughly 67 million shekels (about $16.75 million USD). The remaining 15% of Sigma City will be retained by its current management, Uri Dayan and Natan Tuviana, who will continue to lead the company post-acquisition. This acquisition marks a significant financial exit for the original shareholders of Sigma City, including notable figures from Israel's capital markets and real estate sectors.

Among the key sellers exiting their stake are Ezra Attar, a co-founder and chairman of Sigma City with extensive experience in investment houses and banking; Shmuel Masnberg, chairman of Sigma City's credit committee and a former senior bank executive; Aliza Cohen, owner and CEO of Reshef Nechasim, a real estate marketing firm; and Meir Auzan, who previously divested his insurance agency, Shekel Insurance Agency, for a substantial sum.

Sigma City, established in 2015, focuses on mezzanine financing for developers, particularly in urban renewal projects and post-permit construction financing. This type of lending, often subordinate to senior bank debt, carries a higher risk profile but commands more attractive interest rates, catering to small and medium-sized developers who require equity top-ups. As of June 30, 2026, Sigma City's loan portfolio, including accrued interest, stood at approximately 153 million shekels (around $38.25 million USD).

This acquisition arrives on the heels of a robust financial performance for Mimon Yesir. The company's stock has seen a notable surge of 30% over the past six months, propelling its market capitalization to 2 billion shekels (approximately $500 million USD). In the second quarter of 2026, Mimon Yesir reported a net profit of nearly 74.3 million shekels (about $18.6 million USD), a remarkable 324% increase year-over-year. This growth was driven by strong performance across its segments, including a five-fold increase in net profit for its auto loan division and a significant rise in its mortgage business, which benefited from a novel securitization of second-tier mortgage portfolios.

The integration of Sigma City is expected to bolster Mimon Yesir's position in the Israeli real estate finance market. The broader Israeli real estate sector, while facing evolving construction technologies and market dynamics, continues to present opportunities for specialized financing solutions. Mimon Yesir's expansion into this segment, particularly with a focus on supporting developers, aligns with its strategy to broaden its financial services offerings and capitalize on growth areas within the Israeli economy.