Alony Hetz Properties & Investments : IMMEDIATE REPORT

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Ramat Gan, February 11, 2016

To To

Securities Authority Tel Aviv Stock Exchange Ltd.

Through MAGNA Through MAGNA

Re: Immediate report - additional investment in Carr Properties Corp.

We hereby bring to your attention that yesterday, Carr Properties Corp. (hereinafter: "Carr")1 adopted a resolution regarding capital contribution from its shareholders, by way of rights, at a scope of 300 million dollars, expected to be invested on the following three occassions:

100 million dollars at the end of February 2016 100 million dollars within approximately 4 months 100 million dollars within approximately 7 months

The aforesaid capital contribution is intended for acceleration of the investments plan and continued development of Carr's business.

The Company intends to submit for approval by the board, at its upcoming meeting, as part of the discussion on the Company's annual work plan, a resolution to invest in Carr its relative part in the rights, in the amount of 130 million dollars (approximately 500 million NIS), similarly to JPM,1 and also to exercise the remainder of the rights (if any) not exercised by the minority shareholders in Carr, so that if the minority

shareholders do not participate in the issuance as aforesaid, the Company will invest in Carr, as part of the issuance as aforesaid, an additional amount of up to 40 million dollars (approximately 155 million NIS).

Sincerely,

Alony Hetz Properties and Investments Ltd. By: Nathan Hetz, CEO

And Moti Barzilay, EVP Business Development

1 Carr is a company jointly controlled by the Company and a real estate investment fund managed by the investment bank J.P. Morgan (hereinafter: "JPM"), with holdings of approximately 48.18% by each party. Carr engages, directly and indirectly, in investment in income-yielding real estate for leasing purposes, including maintenance and management of office buildings it owns in the Washington, DC metropolitan area, as well as purchase, promotion and development of land for leasing purposes in that area.