Summit Real Estate Holdings Ltd.

M&A Activity • Aug 14, 2025

This is an unofficial AI generated translation of the official Hebrew version and has no binding force. The only binding version is the official Hebrew version. For more information, please review the legal disclaimer.

SUMMIT REAL ESTATE HOLDINGS LTD

Matam Towers 3, Haifa, P.O. Box 15001, Zip Code 31905 Phone: 04-8408091, Fax: 04- 8408092

August 14, 2025

To:

Israel Securities Authority Via MAGNA

TEL AVIV STOCK EXCHANGE LTD Via MAYA

www.isa.gov.il www.tase.co.il

Subject: Acquisition of Two Properties in Israel

SUMMIT REAL ESTATE HOLDINGS LTD (hereinafter: "the Company") is pleased to announce that it has entered into an agreement to acquire a cold storage facility in the south of the country for approximately NIS 100 million plus acquisition costs. The property includes about 5,000 sqm built on land of about 9 dunams and has a storage capacity of about 11,000 pallets. The property currently generates an annual representative operating profit of about NIS 12 million. Completion of the transaction is expected in the coming days.

In addition, the Company has entered into an agreement to acquire 50.01% of the share capital of a special purpose company that owns land of about 20 dunams, for a total consideration of NIS 24 million. On the land, a property of about 14,000 sqm will be constructed. About 70% of the property is designated for lease to a leading food manufacturing company under a long-term lease agreement. The remaining areas will include cold storage spaces and will be leased to third parties.

The expected investment in the land acquisition and project construction is about NIS 150 million. According to the Company's assessment, completion of construction and occupancy will take about three years, and the expected annual yield, assuming full occupancy, is about 8%. Completion of the acquisition is expected in the coming weeks after the fulfillment of several precedent conditions.

This is an unofficial AI generated translation of the official Hebrew version and has no binding force. The only binding version is the official Hebrew version. For more information, please review the legal disclaimer.

The Company continues to expand its activities in the logistics and cold storage sector as part of its policy to expand its portfolio of income-generating properties in Israel in general and is negotiating additional acquisitions.

The information detailed above regarding the structure to be built on the aforementioned land, its scope, construction cost, and the expected yield from the property after it is built, constitutes forward-looking information as defined in the Securities Law, 1968, based on the Company's management's estimates on the basis of information known to the Company at the date of this report, and there is no certainty that it will materialize, in whole or in part, and its realization depends on factors, many of which are not under the Company's control, including obtaining building permits, changes in construction costs in Israel, obtaining financing on reasonable terms, and developments in the rental market in Israel.

Respectfully,

SUMMIT REAL ESTATE HOLDINGS LTD By: Amir Sagie, CEO