M&A

14 January, 2010

Gazit Globe Israel Sells 49% in One of Its Shopping Centers in Israel

Press Release Source: Gazit Globe Ltd. On Thursday January 14, 2010, 9:57 am EST

TEL AVIV, Israel--(BUSINESS WIRE)--Gazit Globe Israel (Development) Ltd., a subsidiary of Gazit Globe Ltd. (TASE: GLOB), announced that it has completed a transaction with Harel Insurance Investments and Financial Services Ltd. which makes Harel a 49% partner in Gazit's shopping center, G Kfar Saba.

Gazit Globe Ltd., one of the world's leading real estate companies, engaged in the acquisition, development and management of income-producing properties, with a focus on supermarket-anchored shopping centers in high-growth markets in North and South America, Europe and Israel.

Gazit Globe Israel will receive NIS 347 million in return for the 49% stake in G Kfar Saba based on a valuation of NIS 709 million which reflects a 7.75% CapRate. As of the transaction date, the amount invested in G Kfar Saba is approximately NIS 340 million (including land purchase), plus an additional NIS 40 million to complete the last stage of the Center. The transaction includes approximately 50,000 sqm, of which, approximately 38,000 sqm (phase one) is revenue generating and approximately 12,000 sqm (phase two) which is currently under construction.

As a 51% stakeholder, Gazit Globe Israel is entitled to management and promote fees. Harel has a four year Net Operating Income (NOI) protection mechanism built in to the deal which applies to both phases and is determined based on actual NOI.

About Gazit Globe Ltd.

Gazit Globe Ltd., the largest property company in Israel, engages in the acquisition, development and management of income-producing properties throughout the world, while focusing on supermarket-anchored shopping centers in urban growth markets. In addition, the company is active in North America in the senior housing facilities and the medical office buildings sectors. The company continues to seek and realize opportunities by acquiring properties and/or companies that are active within its core business or similar asset classes around the world. In carrying out its activities, the company aspires to maximize its cash flows, while improving its properties and increasing its dividends over time.