Ramat Gan, December 13, 2016

To:

The Israel Securities Authority Through the MAGNA System

To:

The Tel Aviv Stock Exchange Ltd. Through the MAGNA System

Re: Immediate Report - Purchase of an Office Building in Washington, DC, and an Additional Investment in Carr Properties Corp.

  1. We hereby inform you that Carr Properties Corp. (hereinafter: "Carr")1 signed yesterday an agreement for the purchase of an office building located on 1875K Street, Washington, DC, in consideration for an amount of USD 150 million.

    The foregoing building is a Class A building with an overall leased area of 190,000 square feet (17,400m2), and is located in Washington DC's central business district. The building is currently populated with 98% occupancy, and in Carr's estimate is expected to produce, in the first five years after the transaction's closing date, an average annual NOI of approximately USD 9 million. The parties expect the transaction to be closed in January 2017. As is customary, the transaction is subject to certain suspending conditions.

  2. Simultaneously, and for the purpose of the partial financing of the building's purchase as foregoing, Carr yesterday made a resolution to immediately raise capital from its shareholders, by way of a rights issue, in the scope of USD 75 million.

The Company informed Carr that it intends to invest its partial share in the foregoing rights, and in addition use all of the remaining rights (if any) that are not exercised by other Carr shareholders.

The information contained in this immediate report regarding the closing of the transaction, including the NOI forecast, constitutes forward‐looking information as this term is defined in the Securities Law, 5728‐1968. Such information is based on future data and the Company's estimates, and there is no certainty regarding the full or partial realization of the foregoing, inter alia, due to factor outside the Company's control.

Sincerely,

Alony Hetz Properties and Investments Ltd.

By: Nathan Hetz, CEO

and Moti Barzilay,EVP Business Development

1 The Company holds approximately 44.7% of Carr. The Company and JPMorgan (through SSPF, an investment fund managed by JPMorgan) jointly control Carr.

Alony-Hetz Properties & Investments Ltd. published this content on 15 December 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 15 December 2016 15:11:06 UTC.

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