ARGO Properties N.V. — M&A Activity 2025

Oct 8, 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.

alt: Company Logo

ARGO PROPERTIES N.V. ("the Company")

October 8, 2025

To:

Israel Securities Authority Via MAGNA

Tel Aviv Stock Exchange Ltd. Via MAYA

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

Subject: Immediate Report – Update Regarding Transactions for the Acquisition of New Assets Since the Previous Immediate Report

In this matter

(A) New Transactions for the Acquisition of 129 Residential Units in 8 Different Transactions for a Total Amount of €20.9 Million

Since the date of the last immediate report on this matter dated August 4, 2025 [Reference No. 2025-01-057455] and until October 3, 2025, the Company has entered into exclusivity agreements for the acquisition of 129 residential units in the cities of Leipzig and Dresden for a total amount of €20.9 million (including related transaction costs). The acquired assets have an area of 8,805 sqm and generate annual rental income of €836 thousand (reflecting an initial rental yield of 4.0%). The average rent in the acquired assets is €8.03 per sqm. According to the Company's assessment, as a result of the high quality of the acquired assets, the rent for new leases in these assets will be approximately €13.67 per sqm on average, reflecting a potential rent increase of about 70%.

Since the beginning of 2025, the Company has acquired (including assets in the process of acquisition)¹⁰¹ 606 residential units for a total amount of €97.8 million (including related transaction costs).

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.

It should also be noted that most of the acquired assets are suitable for R2C activity and are expected to contribute to increasing the potential profit pool from apartment sales. The Company will begin – after completing the acquisition of the acquired assets – the process of parcelization of the above assets in preparation for R2C activity.

Below is further detail regarding the aforementioned transactions:

From August 1, 2025, to October 3, 2025, the Company, through wholly owned subsidiaries, entered into 8 exclusivity agreements¹⁰² with third parties not related to the Company and/or its controlling shareholders, for the acquisition of 5 buildings, including 67 residential units in Leipzig, and 5 buildings, including 62 residential units in Dresden, with a total rental area of approximately 8,805 sqm and generating annual rental income of approximately €836 thousand. The total consideration for these assets (including related transaction costs), subject to signing notarial purchase agreements and completing the transactions, is expected to amount to approximately €20.9 million.

(B) Completion of Transactions

It should also be noted that during August and September 2025, the Company completed the acquisition of 9 assets in Leipzig and Dresden, including 70 residential units with a total rental area of approximately 7,925 sqm and generating annual rental income of approximately €677 thousand. The total consideration for these assets (including transaction costs) amounted to approximately €17.1 million.

It should be noted that as of October 3, 2025, the Company holds (including assets in the process of acquisition)²⁰³ 466 residential buildings including 4,895 residential units (97% for residential use) with a rental area of approximately 333,106 sqm plus 922 parking spaces.

As described in section 7.2 of chapter 7 ("Description of the Corporation's Business") of the shelf prospectus as well as the Company's completion offering prospectus dated May 10, 2021, bearing the date May 11, 2021 ²⁰⁴, and the supplementary notice published by the Company on May 11, 2021 ²⁰⁵, the process of asset acquisition by the Company is based on the purchase of individual assets from private investors in a large number of small transactions of non-material scope (purchase price of €0.75 – 2 million per transaction), each of which does not require immediate reporting (in accordance with the provisions of Regulation 36 of the Securities Regulations (Periodic and Immediate Reports), 1970).

Sincerely,

ARGO PROPERTIES N.V.

By: Mr. Gal Tenenbaum and Ofir Rahamim, Co-CEOs of the Company

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.

FOOTNOTE:

• ¹⁰¹ Including assets under notarial purchase agreements (legally binding to complete the transaction) and assets under exclusivity agreements (no legal obligation to complete the transaction).
• ¹⁰² No legal obligation to complete the transaction.
• ²⁰³ Including assets under notarial purchase agreements (legally binding to complete the transaction) and assets under exclusivity agreements (no legal obligation to complete the transaction).
• ²⁰⁴ [Reference number: 2021-01-081717].
• ²⁰⁵ [Reference number: 2021-01-082515].