Carasso Real Estate Ltd.

Legal Proceedings Report • Aug 21, 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.

CARASSO REAL ESTATE LTD ("the Company")

August 20, 2025

To:

Israel Securities Authority www.isa.gov.il

Tel Aviv Stock Exchange Ltd. www.tase.co.il

Subject: Immediate Report

Further to the Company's immediate report dated December 4, 2022 [¹⁰¹] regarding the conditional deposit approval of Urban Renewal Plan 505-0858258-H/655 Yoseftal Area – Holon ("the Plan") which applies to the real estate of the "Arava North Project[¹⁰²]" (held by the Company at a rate of 50%) ("the Project"), and to the immediate report dated April 20, 2023 [¹⁰³] regarding the submission of an objection to the Plan by the Company and its partner in the Project ("the Objection to the Plan"), and as stated in sections 1.7v and 1.7.4.8 of the Corporate Business Description Report attached as a chapter to the Company's 2024 periodic report, [¹⁰⁴] and further to the immediate report dated June 10, 2025 [¹⁰⁵] regarding the decision of the District Committee and the approval of the zoning plan for validation, partial acceptance of the objection, and examination of the significance of the decision and its impact on the planning data of the Project by the Company and its partner ("the Previous Reports"), the Company updates that it has completed the examination of the Plan and has concluded that the Project according to the Plan approved by the District Committee is not economically viable.

Therefore, the Company and its partner will act to promote a process with the Holon Municipality, with the aim of initiating a new plan that will grant economic feasibility to the Project[¹⁰⁶] and, in addition, are considering filing an administrative petition against the approval of the Plan[¹⁰⁷].

For more details about the Project, see the Previous Reports, which are referenced in this report.

Terms not explicitly defined in this report shall have the meaning given to them in the Previous Reports.

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.

Sincerely,

CARASSO REAL ESTATE LTD

Signed by:

Dan Frans, CEO

Harel Shoham, Legal Counsel and Company Secretary.

FOOTNOTE:

¹⁰¹ Reference number: 2022-01-146920.

¹⁰² 18-26 Arava St., 27-39 Arava, 56 Eilat, Holon, in the real estate known as Block 7127 Parcels 32, 30, 140, 138, 48, 141, 142, 143.

¹⁰³ Reference number: 2023-01-043488.

¹⁰⁴ Published on March 31, 2025 (Reference number: 2025-01-022582).

¹⁰⁵ Reference number: 2025-01-041472.

¹⁰⁶ It should be emphasized that the data presented by the Company regarding the planning of the Project in the 2024 Corporate Business Description Report regarding the Project are not in accordance with the deposited Plan, and are in accordance with the business plan of the Company and its partner and based on the objection submitted to the deposited Plan.

¹⁰⁷ It should be emphasized that there is no certainty that the Company and its partner will be able to bring about the existence of a new plan that will grant economic feasibility to the Project.