Gazit Globe Raises NIS 293 Million Through an Issuance of Common Stock and Warrants

October 19, 2009 4:00 AM EDT

The Company Will Receive Net Proceeds in Excess of NIS 400 Million Upon Exercise of Warrants

TEL AVIV, Israel--(BUSINESS WIRE)-- Gazit Globe Ltd. ("Gazit Globe") (TASE: GLOB), a multinational real estate company that is engaged in the ownership, operation and development of income- producing properties, predominantly grocery-anchored shopping centers, announced today that it has completed an equity offering of 8.75 million shares priced at NIS 33.5 per share and 2.9 million warrants with an exercise price of NIS 39 per share as detailed below:

    --  Psagot Provident Funds - acquired 5 million common shares which
        represent 3.60% of the shares issued and outstanding of Gazit Globe and
        1.67 million in warrants, resulting in net proceeds of approximately NIS
        167.5 million to the company. Combining its new stock acquisition with
        its present holdings in the company, Psagot is expected to become a
        substantial shareholder in the company holding more than 5% of the
        issued and outstanding shares of the company.
    --  Clal Insurance's Controlled and Managed Entities- acquired a total of
        2.25 million shares which represent 1.62% of the shares issued and
        outstanding of Gazit Globe and 750,000 in warrants, resulting in net
        proceeds of approximately NIS 75.4 million to the company.
    --  Gazit Inc. The Parent Company- acquired 1.5 million shares which
        represent 1.09% of the shares issued and outstanding of the company and
        500,000 in warrants, resulting in net proceeds of approximately NIS 50.2
        million to the company (following the equity issuance, Gazit Inc. will
        hold 63.70% of the company's outstanding shares).

The warrants will expire on May 31st, 2010 at an exercise price of NIS 39 (CPI Adjusted). In addition, the company has the right, under certain conditions, to force the parties to the deal to convert the warrants into shares.

Gazit Globe's Interim President, Roni Soffer, commented:

"We are happy to announce the recent equity offering and view the increased holdings by Psagot Provident Funds and Clal Insurance, two of the leading institutional investors in Israel, as a significant vote of confidence in Gazit Globe and its business strategy. The recent equity offering along with other debt and equity offerings completed this year, sum up to NIS 1.1 billion year-to-date. These proceeds, along with the company's already strong liquidity position, undrawn credit lines and unencumbered assets, will allow Gazit Globe to continue taking advantage of new investment opportunities in all of the territories it operates in as it did throughout the year by investing in excess of NIS 3.5 billion in the Gazit Group's core business."

About Gazit Globe

Gazit Globe, the largest property company in Israel, is engaged 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 also active in North America in the senior housing facilities and the medical office buildings sectors, as well as continuing to seek and realize opportunities by acquiring properties and/or companies that are active within its core business or similar asset classes, both in regions where it operates and also in new territories. In carrying out its activities, the company constantly aspires to maximize its cash flows, while improving its properties and increasing its dividends over time.

The company's website is: http://www.gazit-globe.com

    Source: Gazit Globe Ltd.

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