Electra Real Estate Ltd.

M&A Activity • Dec 7, 2025

ELECTRA REAL ESTATE LTD

Public Immediate Report about an Event or Matter Deviating from the Regular Business of the Corporation

Regulation 36 of the Securities Regulations (Periodic and Immediate Reports), 1970

Results of issuance should be reported in form T20 and not on this form. Reporting about rating of BONDS or corporation rating should be submitted via form T125.

Report about:

Nature of the Event:

Entering into an Agreement for the Sale of a Housing Complex in South Carolina Held by the Third Equity Fund for Housing Complexes

1. The company hereby announces that on December 5th, 2025, it signed a deal with a third party for the sale of all rights in a housing complex located in Charleston, South Carolina, USA (hereinafter: "the Asset"), which is held by the third U.S. residential properties investment fund and an American limited investor (LP), for consideration of approximately \$51.5 million. The Asset, managed by the company as a General Partner, was acquired in February 2020 for about \$33.9 million and includes 232 housing units. The equity invested in the Asset totaled about \$13.6 million. The free cash flow that will result from the sale amounts to about \$25.9 million. In addition, during the holding period, the Asset distributed about \$7.1 million in routine distributions, so that in total the Asset will yield its investors a cash flow of about \$33 million up to the realization date, reflecting an annual IRR of about 19.7% at the asset level and a multiple on equity of about 2.43. The original equity invested by the company (as Limited Partner) in this deal stood at about \$0.5 million. The free cash flow that will accrue to the company from the sale, beyond routine distributions received during the holding period (about \$0.3 million), totals about \$1.6 million, and in total, the company will receive from this deal a cash flow of about \$1.9 million.

As a result of the above, the company does not expect to record significant profit or loss in the fourth quarter of 2025. Completion of the transaction, subject to the satisfaction of all conditions precedent under the sale agreement, is expected to occur in Q4 2025.

The information in this immediate report about the impact of the transaction on the company's financial results, the cash flow to accrue to the company, as well as the timing of the transaction's completion, constitutes forward-looking information based on the completion of the engagement with the third party as mentioned above and is also based on the company's assumptions regarding costs related to executing the transaction and commitments in respect of income taxes, for final price adjustments that may be in the transaction and regarding the date of fulfillment of conditions precedent for completion. This information may not materialize, or may materialize differently than expected, including if the company's assumptions as stated are realized differently than expected.

Bryant_isa.pdf

Alt text: Link to PDF document entitled 'Bryant_isa.pdf'

2. Date and time the corporation first became aware of the event or matter: 05/12/2025 at 23:30.
		3. If the report was delayed — reason for the delay:
		4. On Date: At Time: the impediment to reporting was removed.

1. The company is ^a shell company as defined in the Stock Exchange regulations.

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Details of Authorized Signatories on Behalf of the Corporation:

#	Name	Role
1	Gil Rushink	Chairman of the Board
2	Amir Yaniv	CEO

Explanation: According to Regulation 5 of the Periodic and Immediate Reports Regulations (1970), ^a report submitted under these regulations must be signed by those authorized to sign on behalf of the corporation. Staff position on the subject can be found on the authority's website: Click here

Securities of the corporation are listed for trading on the Tel Aviv Stock Exchange

Short Name: ELECTRA REAL ESTATE

Address: 98 Yigal Alon St., Tel Aviv 6789141

Phone: 03-7101700 Fax: 03-7101720

E-mail: corpsecretary@ere.co.il

Company Website: https://electra-re.com/

Previous names of the reporting entity: [None listed]

Name of electronic reporter: Wesley Eliezer

Role: Deputy CFO

Employer Company Name: Elco Holdings Ltd.

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.

Address: 98 Yigal Alon St., Tel Aviv 6789141

Phone: 03-6939678 Fax: 03-6939656 E-mail: eliv@elco.co.il