Direct Finance (TASE: DIFI), headed by Eran Golan, is expanding its non-bank credit business into real estate project finance. Its subsidiary Direct Finance Real Estate and Mortgages has signed an agreement for the acquisition of 85% of Sigma City Real Estate Finance for NIS 34 million.
In addition, Direct Finance will provide an owner’s loan of NIS 29 million, making its total commitment in the deal NIS 63 million.
The balance of the shares, 15%, will remain in the hands of Sigma City’s managers Ori Dayan and Nathan Tubiana, who will continue in their roles after the completion of the deal. Completion is subject to conditions, among them receipt of a revised control permit from the Capital Markets Insurance and Savings Authority and approval by Sigma City’s financing banks.
Sigma City is a privately-held company that was founded in 2015. It provides credit for residential real estate projects in Israel, including mezzanine finance for urban renewal projects and finance for projects after the receipt of a building permit, mainly to small and mid-size developers. At the end of June 2026 its loan portfolio, including accumulated interest, amounted to NIS 153 million.
This is a financing area with a different risk profile from that of the main activity of Direct Finance, which is vehicle loans and mortgages for private customers. Mezzanine finance bears higher interest alongside higher risk.
Direct Finance’s share price has risen by 30% in the past six months, giving the company a market cap of NIS 2 billion. It posted a net profit in the second quarter of NIS 74.3 million, 324% higher than in the corresponding quarter of 2025. Its loan portfolio amounted to NIS 3.14 billion at the end of the quarter, representing a rise of 29%.
Published by Globes, Israel business news - en.globes.co.il - on September 22, 2026.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2026.