Ramat Gan, February 22 2015

To:

To:

Israel Securities Authority

Tel Aviv Stock Exchange Ltd.

Through MAGNA

Through MAGNA

Re: Immediate Report on Carr Properties Activity

Following that stated in Section 2.3.3 (the last two paragraphs on Page (14) of the Board of Directors' Report included in the quarterly report for the nine months ending September 30 2014, published on November 24 2014 (ref. no. 2014-01-201555), the Company is honored to announce that on Thursday Evening (Israel time), the shareholders of Carr Properties Corporation1 (hereinafter: "Carr") invested a sum of $130 million US, by way of an issue of rights. At the same time, Carr invested a sum of $115 million US in Carr Properties Partnership ("the Partnership")2.
Concurrently, the Partnership completed a transaction for the purchase of full rights to a company the equity of which as of the transaction date was $45 million US, which owns a Category A office building in the Rosslyn Ballston Corridor (North Virginia) worth $85 million, by way of an issue of rights to sellers in the Partnership worth $35 million and in return for a cash payment of $10 million. The office building in the possession of the purchased company, as noted above, has a rental space of 15,000 sq. meters and produces a yearly NOI of $6 million US.
After the issue of rights and the completion of the transaction in question, Carr holds 86.385% of the
Partnership while the Company and JPM hold, each, approximetly 50% of Carr's equity directly and
43.148% of the Partnership indirectly.
Respectfully,

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

Moti Barzilay, EVP Business Development

1 Carr is a company under joint control of the the Company and an investment fund managed by JPM n which each party has a 50% stake. Carr deals, through the Carr properties Partnership, in investment in cash-generating properties for rental purposes including managing and maintaining office buildings in its possession in the Metropolitan Washington DC area as well as the purchase, initiation and development of real estate for rental purposes in this area.

2 The Partnership is a corporation through which Carr holds and manages its assets.

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