September 2011

Introducing Habas Investments

Disclaimer

Certain matters discussed by Habas Investments in this presentation constitute forward-looking

statements within the meaning of the securities laws. Although Habas Investments believes that the

expectations reflected in such forward-looking statements are based upon reasonable assumptions, it

can give no assurance that these expectations will be achieved. Factors that could cause actual results

to differ materially from current expectations include changes in macroeconomic conditions and the

supply and demand factors in the areas in which Habas Investments is active; the continuing financial

success of Habas Investments current and prospective tenants; continuing supply constraints in its

geographic markets; the availability of properties for acquisition; the success of its efforts to lease up

vacant space; the effects of natural and other disasters; the ability of Habas Investments to successfully

integrate the operations and systems of acquired companies and properties.

Operations in Israel, Western Europe and North

America

New York Amsterdam Tel Aviv Zurich

szeke

A multinational group with a long family heritage

1900s 1910s 1920s 1930s 1940s 1950s 1960s 1970s 1980s 1990s 2000s 2010s

1908:

Foundation

of a leather

trading

business in

Palestine

1930s:

Purchase

of land in

what would

later

become

major cities

in Israel

1949:

Foundation

of the

Jerusalem

shoes

factory - the

largest in

the Middle

East

1953:

Separation

of the

footwear

and real

estate

business

1962:

First major

develop-

ment

project

1993:

TASE IPO

of the

public

company*

Acquiring

shopping

centers in

the US

2006-2007:

Re-esta-

blished the

European

HQ with

major

investment

s in

Western

Europe

1975:

Developed

residential

neighbor-

hoods in

Israel

1980s:

Developed

1,000s of

residential

units,

shopping

centers in

Israel

1991:

Built the

Kfar Saba

City Center

2004:

Start of the

Yoo Tel

Aviv project

2010:

Start of the

real estate

debt

operation;

Re-esta-

blishment of

the US HQ

* One of the Habas Group companies

Habas Investments: three business segments

ROOTED IN DEEP REAL ESTATE

EXPERTISE

DEVELOPMENT

INCOME PRODUCING

PROPERTIES

REAL ESTATE

DEBT

Large-scale projects where

the group’s skill and

reputation can be leveraged

to command a premium

Cash flow from NSI

dividends and direct

ownership of properties in

WE and the U.S

Combining real estate

expertise with financial

sophistication

Overview

Israel Netherlands

US

Netherlands

Switzerland

HABAS INVESTMENTS

DEVELOPMENT

INCOME

PRODUCING

PROPERTIES

REAL ESTATE

DEBT

Yoo Tel Aviv

1 Rothschild

Caesarea

Koresh

NSI 19.3%

Swiss portfolio

German portfolio

Purchase of B-notes

and other CMBS

tranches

Division

HQ

Properties

Development

Careful selection of development projects

Habas Investmetns probably sees every development opportunity in Israel, but only handpicks those where it can create a truly new reality in real estate far ahead of anyone else

Past development projects

The Arim Mall with over 100 businesses created a new city center in Kfar Saba, an affluent suburb in the greater Tel Aviv area. Many years after completion, it still is among the top 10 shopping centers in Israel

1994 Combining quality construction with a high standard of living, the Country Neighborhood in Modi'in is one of the most successful residential projects in the newly established city situated between Tel Aviv and Jerusalem.

1998

Past development projects

2004 Dan Eden is a luxurious residential project located in one of Tel Aviv's most desirable neighborhoods, Shikun Dan.

1999 A 600 unit residential complex built to the highest quality standards in the heart of Kfar Saba, an affluent suburb in the greater Tel Aviv area.

The Group’s recent flagship development projects

The Yoo Tel

Aviv towers

were developed

under design

supervision of

Philippe Starck.

The project led

the way in trans-

forming a

deserted waste

land into one of

the most

exclusive neigh-

borhoods in Tel

Aviv, and was

the first branded

development

project in Israel.

Total sales were

NIS 1.2bn

Back in 2003,

people were still

wondering

whether high net

worth individuals

would buy multi-

million dollar

apartments at 1

Rothschild in

central Tel Aviv.

Habas created

the market. Total

sales were NIS

800m

2007 2010

Future projects

An attractive location in the heart of Tel Aviv near Rothschild Boulevard. The company is in the process of rezoning for hotel, residential and retail use.

Vacation apartments and retail space with a view of either the Mediterranean Sea or the Caesarea international golf course. In advanced planning stages.

2013 2012

Income producing properties

Portfolio

profile

Financial

profile

NSI: a Dutch REIT - “Space to Perform”

Assets

Market cap

Annual

revenues

Annual NOI

Current

dividend yield

€1.4bn

€ 580-

660m

€103m

€89m

8-9%

B-class assets,

A-class locations

Focus on Netherlands

Income producing

properties

50/50 retail/office

150 mid-size

properties

Habas can leverage NSI

equity

Habas receives tax benefit

on NSI operating profit

Habas owns 19.3% and is

the largest shareholder

Hertzel Habas is the NSI

Chairman of the

Supervisory Board

Sustainable annual

dividend

Following completion of the merger with VastNed Estimated Pro-forma profile of the combined entity*

Portfolio mix

Geographical focus

63%

31%

6%

70%

22%

8% Germany /

Switzerland

Belgium

Netherlands

Offices

Retail

Industrial

304 properties

€2.4bn assets

#2 mixed use REIT

in The Netherlands

Dividend yield 9%

Combined equity

of €900m

* As stated in the NSI presentation from April 20th 2011

Direct ownership of income producing properties in

Western Europe - some examples

The Dietikon City Plaza is a 12,700

sqm Class A office building in

Dietikon, Switzerland, situated on

Zurich's outer ring. The leading office

building in the area, it has 6 tenants

and a 100% occupancy rate. Built in

1992, renovated in 2000,

The Agy Shopping Center is located in

Fribourg, Switzerland, south of Bern, it

was built in 1999 and covers 11,140

sqm of retail space. The center, which is

situated on the Route d'Agy highway, is

comprised of 13 stores and an

underground parking lot with 370

spaces. The shopping center's anchor

stores are Coop, one of Switzerland's

two leading supermarket chains, and

Media Markt, Europe's largest retailer of

consumer electronics. The center is

99% occupied.

,

Bad Homburg is a 10,000-sqm retail

property located in a prime location near

Frankfurt. The high-quality, distinctive

property includes a 241-car parking lot.

The property is rented out in its entirety

to one tenant, Karstadt retailer chain for

a period of 15 years with two 5-yr

extension options ,

Habas USA

Established in May 2011

Focus on income producing properties

with a value added risk profile

Real estate debt

2005 2006 2007 2008

A significant opportunity for Habas

2009 2010 2011

According to DTZ, the European Debt Funding

Gap (between existing debt and debt

available to replace it) for

2011-2013 is $100bn+

It takes real estate expertise,

not just financial expertise

to separate the chaff

from the wheat

2012 2013

What a pure financial

player sees

What Habas sees

Habas “Loan-to-Own” Strategy

Owner credit

worthiness

Loan

details

Property

potential

A recent case example: Wankdorf Center (Bern)

CHF 65 m

Habas

Buys for

CHF

11.25m

Habas

recoups

CHF 230 m

Wiped out

Wiped out

2006

April

2011

May

2011

The owner purchases the building

financed by 2 loans.

B-note Senior debt Equity

The owner is in breach of the LTV

covenant, despite that there are no

problems with the property and its tenants’

payments and the loan is still performing.

Based on deep understanding of the

property, Habas buys the b-note at a

discount and offers the owners either to

buy the property or do all the work to sell

the property in return for a profit share

Habas takes over managing all aspects

of the deal for selling the property, with

the owner’s consent, making a CHF19m

or 170% profit in 2 months

Habas

Profit share

2010 Breach of LTV Covenant for the whole loan

About

Shareholders

* Institutional investors

39%

23%

7%

6%

5%

20%

Habas family

Ofer Management Group

Analyst*

Psagot*

Odin

Public

HABAS INVESTMENTS

Senior management

Eyal Reggev

CEO Habas USA

Ronen Akavia

CEO

Amir Nitzani

CEO Habas Star

Dafna Katzir

VP Marketing &

Sales

Shachar Klein

CFO

Board of Directors

Haim Barzel

Josef Habas

Hertzel Habas

Chairman

Eithan Ben Eliahu

Noya Habas

Zamir Sofer

Yoseph Rozen

Shimon Mizrahi Izake Lotan

Revenues and net income NIS m

2009 2010 H1-2011

387.0 799.1 93.6 Development

59.5 95.3 38.8* Income producing properties

- 15.8 78 Real estate debt

446.5 910.2 210.4 Total revenues

(34.1) 70.4 50.0 Net profit

*Including the expected dividend from NSI to be distributed in Q2-2011.

Healthy balance sheet – long debt duration NIS m, year end

783 705 731

39 14 7

813

652 610

146

93 95

86

52 37

533

80 27

197

411 438

305 382 451

455

586 606

1115 827

738

721

212 150

2009 2010 H1-2011 2009 2010 H1-2011

1,945

Subsidiaries

Other LT assets

Properties

Land for building

Apartments for sale

Cash

Other ST assets

Equity

Debentures

Bank

loans*

Other ST & LT

liabilities

2,597 2,597

2,007 2,007

ASSETS LIABILITIES

1,945

12%* 19%* 23%*

Equity as % of total balance sheet * Mostly non recourse

Strong cash flow generation

438 411

197 146

71

220

205

47 118

76

66 124

230

25

NIS m

Cash

H1-2011

Cash

2009

EOY

Cash

2010

EOY

dividend

Global financial

crisis

* Includes forex adjustment ($-4m in 2009, $+2m in 2010)

Cash

2008

EOY

Ops Fin* Inv Ops Fin* Inv Ops Fin* Inv

Recapping

Recent developments

Opened US

headquarters

Opportunistic sale of

properties in the Swiss

portfolio

Closed Wankdorf

Center B-note deal

New asset purchases

in Germany

New dividend policy:

>25% of annual profits

NSI – VastNed

merger

NIS 55m dividend

distributed since

January 2011

Recapping the investment opportunity

Long-standing player in global real estate

Broad international portfolio of properties and activities

Strong growth prospects: - Development - Income producing properties - Real estate debt

Strong financials and cash flow generation

Thank you

Info@habas.com