Azrieli : to build the new SolarEdge campus on the North Glilot site. Lease agreement for 15 years with an option for another 10 years from 2025

May 11, 2021

Azrieli Group to build the new SolarEdge campus on the North Glilot site

Azrieli signs lease agreement with SolarEdge for 15 years with an option for

another 10 years from 2025

Azrieli Group and SolarEdge have today announced that they have signed an agreement in the context of which Azrieli Group will build SolarEdge's new campus on land that Azrieli is acquiring at the North Glilot site.

The land, around 26,000 sqm, is located north of the Glilot site on the east side of the Coast Road. The SolarEdge campus will be built on an area of land of around 16,500 sqm, and will include a standalone building of an area of around 38,000 sqm and 950 parking spaces. The lease agreement with SolarEdge is for 15 years and includes options for extension up to a total period of 24 years and 11 months. The agreement is expected to generate annual NOI of some NIS 62 million. The total costs of construction of the campus (including the part of the land allocated for construction of the campus) is expected to total around NIS 860 million.

Azrieli Group is expected to hand over the project during 2025, and it will be planned jointly with SolarEdge.

SolarEdge is an Israeli public company, a global leader in smart energy technology, which is traded on the Nasdaq in the U.S. according to a market cap of around $11 billion. The company offers its customers a broad range of products and services in the field of renewable energy, such as: commercial and home solar systems which allow maximum use of energy, electric cars, rechargeable batteries, smart home management, and more. SolarEdge systems are sold in more than 130 countries worldwide and allow its hundreds of thousands of customers to enjoy clean and green energy production every day, energy independence and a significant reduction in electricity costs.

On the remaining land available for construction, of an area of some 9,000 sqm, Azrieli Group is planning to develop additional areas for retail and commerce of a similar size that are expected to yield similar additional NOI. The Company intends to promote a zoning plan for additional rights in the said area.

Last week, Azrieli Group and fintech company Rapyd announced that they had signed a significant lease agreement for an area of around 13,500 sqm in the Triangular Tower in Azrieli Center and another 14,000 sqm in the Spiral Tower, with Rapyd expected to move in in 2026. The two towers are located close to one another and are part of the Azrieli Tel Aviv Center. The transaction is estimated at around NIS 100 million in the Triangular Tower and around another NIS 150 million in the Spiral Tower, over the first five years of the agreement in each tower.

Eyal Henkin, CEO of Azrieli Group: "We are pleased to announce, within a short period of time, another significant office transaction. The Israeli market has over the years produced several large market-leading companies, many of which are seeking to consolidate their operations in a single central campus. We have performed several transactions with leading companies which have concentrated their activity at Azrieli sites, and we welcome the opportunity to join forces with a

Azrieli Group Ltd.

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Azrieli Center 1, 132 Menachem Begin, Tel Aviv, 6701101. Tel: [phone], e-mail:[e-mail]

website:www.azrieligroup.com

global leader, one of the largest and leading companies in Israel. This transaction is further evidence of the strength of the office sector, post-Covid, and we believe that we will continue to see transactions in the market which express the work model in the new reality".

Zvi Lando, CEO of SolarEdge: "SolarEdge is happy to collaborate with Azrieli Group in the construction of its new home in Israel. Azrieli Group, together with Skorka Architects, have proposed the best plan for us and in an exceptional location in terms of quality and access. We believe that the new campus, which will be built according to our unique needs, including advanced development laboratories, with special emphasis on green building, will provide the company's workers with an optimal work environment which is vital to our being able to continue meeting our growth plans, while maintaining sustainability and making the best use of renewable energies".

For further details:

Moran Goder, Head of Capital Markets & Business Development Analyst, Azrieli Group Office: 03-6081310,Mobile: [phone],[e-mail]

Imaging of the planned project:

Azrieli Group Ltd.

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Azrieli Center 1, 132 Menachem Begin, Tel Aviv, 6701101. Tel: [phone], e-mail:[e-mail]

website:www.azrieligroup.com

Azrieli Group Ltd.

______________________________________________________________________________________________________

Azrieli Center 1, 132 Menachem Begin, Tel Aviv, 6701101. Tel: [phone], e-mail:[e-mail]

website:www.azrieligroup.com