Regulatory Filings • Oct 30, 2025
Regulatory Filings
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To: Israel Securities Authority www.isa.gov.il
To: The Tel Aviv Stock Exchange Ltd. www.tase.co.il
(the Company)
October 30, 2025
Following the report from January 2, 2025 (reference number: 2025-01-000679) regarding an urban renewal project at 5,7,9 Tel Hai, 30,32,34 Livorno and 5,7,9 Emek HaMa'ayanot buildings in the city of Bat Yam (hereinafter: the project), the Company is pleased to announce that it has received a notice from the tenants' representatives that the Company's share in the project is being increased from 50% to 100%.
Within the framework of the project, 198 existing units are expected to be demolished and the Company anticipates constructing approximately 560 new units, as well as areas for commerce, employment, and public buildings. The Company's assessments as mentioned are based, among other things, on internal planning checks and professional consultants' examinations, in accordance with Appraisal Standard 21.1¹ and subject to the approval of a detailed plan for the compound.
The Company will conduct negotiations to reach an agreement with the tenants' representatives on the wording of an evacuation-construction agreement, and will immediately begin signing the veteran tenants onto this agreement. In parallel, the Company intends to promote a detailed plan for the compound, work towards having the compound declared as an evacuationconstruction compound via the taxation track² in accordance with the provisions of the Government Authority for Urban Renewal Law, 2016, and to act according to other conditions customary in evacuation-construction projects. According to Management's estimates and subject to the occurrence of the prerequisites for implementing the project as detailed herein, a building permit is expected to be granted in approximately ve years.
The information described above regarding the project and the detailed plan, including the number of units, scope of the project, and the timing for issuing a building permit, constitutes forward-looking information as dened under the Securities Law, 1968. Such information includes, among other things, forecasts, goals, estimates, and future projections whose realization is not certain and is not under the Company's control. Forward-looking information is based on management assessments, including, among other things, the Company's evaluations and plans regarding planning aspects, which may not materialize or may be realized differently than Company plans, including if one or more of the following events occur: (1) A decline in the demand for apartments or in the market situation and/or in the real estate market in general, and particularly in the area of the project; (2) Changes in expected construction costs and/or the prices or availability of raw materials and/or construction inputs, or in labor availability; (3) The detailed plans initiated by the Company and/or reliefs sought by the Company are not approved, or are approved under different conditions or with changes to the submitted plans; (4) Any of the required conditions for the construction of the project in the compound does not occur, including the satisfactory marketing of units, signing individualized contracts with each of the tenants in the compound, delays or other impediments in the issuance of building permits, or the occurrence of any of the conditions under the plan applicable to the project, failure to reach agreement and sign a nancing agreement with a nancial entity in connection with the project, and more; (5) Any of the risk factors to which the Company is exposed, as detailed in the 'Description of the Corporation's Business' chapter included in the 2024 Annual Periodic Report published by the Company on March 24, 2025 (reference number: 2025-01-019503), included herein by reference, materialize.
Best regards,
Ariel Pashin – Chief Financial Ocer
Standard 21.1, as determined by the Real Estate Appraisers Council at the Ministry of Justice, is a professional standard for real estate appraisers which took effect in June 2022. The standard aims to balance interests between various parties in urban renewal (evacuationreconstruction) projects: authorities, developers, and apartment owners. The standard's purpose is to ensure, on the one hand, that the rights granted to the developer under the project guarantee its economic viability so the developer will implement it, but on the other hand, to avoid overburdening the local authority. 1
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 taxation track, pursuant to the Government Authority for Urban Renewal Law, 2016, is a government-driven taxation track to promote urban renewal projects intended for private developers. Under this track, the government declares a compound upon the advisory committee's recommendation, and the developer, together with the apartment owners, acts to change the detailed plan for the compound. Also under this track, similarly to the local authority route, the declaration's validity is for six years with a possible extension for another six years (it should be noted that under the so-called Arrangement Law as dened below, the limitation on the declaration period has been canceled). Unlike the local authority route, under this track the Ministry of Housing does not participate in planning funding, but the developer is entitled to tax benets such as exemption from betterment levy under certain conditions, capital gains tax benets, purchase tax benets for current owners, possible deferral of the tax liability date, and VAT exemption on construction services and on the sale of new apartments to owners. 2
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.
Best regards,
Ariel Pashin – Chief Financial Ocer
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10/30/2025 | 6:53:29 AM
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