BCRE.L Regulatory News (BCRE)

28 March 2017

BCRE - Brack Capital Real Estate Investments N.V.

("BCRE" or the "Company")

Associate undertaking Reports for 2016

The Company announces that Brack Capital Properties N.V. ("BCP"), an associate undertaking of the Company whose shares are traded on the Tel Aviv Stock Exchange, has published the following in relation to the year ended 31 December 2016:

1. Board of Directors' report on the Corporation's state of affairs

2. Consolidated financial statements

3. Presentation of financial data from the consolidated financial statements attributed to BCP itself

For ease of reference, the uncertified English translation of the above documents along with the Hebrew certified versions, are available on the Company's website www.brack-capital.com.

Key highlights relating to the principal results for the year ended 31 December 2016 are:

1. Profitability - for 2016, BCP's net income attributed to BCP's shareholders amounted to c. EUR 76.3 million compared to a net income of c. EUR 63.4 million for 2015. Contribution from the income producing real estate assets and the residential development activity to BCP's results were:

- Income producing real estate assets - for 2016, the Funds From Operations ("FFO") amounted to c. EUR 29.3 million compared to c. EUR 24.3 million for 2015. The FFO in the fourth quarter of 2016 amounted to c. EUR 8 million, which grosses up to an annualized FFO of c. EUR 32.1 million.

- Residential development activity - for 2016, the contribution to profit from the Grafental project amounted to c. EUR 15.4 million (consolidated) from the completion of the delivery of the remaining 55 flats, out of 118 in total, of phase B1 and the delivery of 93 flats, out of 107 in total, of phase B3.

2. Balance sheet structure and financial strength:

a. Equity and EPRA NAV2 - the equity attributed to the shareholders of BCP amounted to c. EUR 419.2 million and to c. EUR 466.2 million, as of the report date and as of the report signing date1, respectively. The EPRA NAV amounted to c. EUR 491.2 million and c. EUR 538.2, as of the report date and as of the report signing date1, respectively

b. Debt ratios - the LTV ratio3 is 51.3% and 47.5% as of the report date and as of the report signing date1, respectively. The EBITDA (only from the income producing portfolio, excluding operating profit from the development activity) to interest expense is c. 3.25x in the fourth quarter of 2016.

c. Liquidity - cash and liquid assets amounted to c. EUR 89.3 million and c. EUR 136 million as of the report date and as of the report signing date1, respectively.

1 Include the net consideration of the public offering completed by BCP in January 2017. For additional information regarding the public offering see material events section of the consolidated financial statements.

2 EPRA NAV - for information regarding the index and the calculation method see section 5 of part A of BCP's Board of Directors' report on the Corporation's state of affairs.

3 Net debt to net total balance sheet.

ENQUIRIES:

About BCRE

BCRE is an international real estate development and investment group, headquartered in the Netherlands and listed on the London Stock Exchange. Through its subsidiary and associated undertakings, the Company is interested in, develops and operates and international portfolio of real estate assets, predominantly located in the USA, Germany and Russia.

The Company has established local management team platforms with significant local market expertise in the US, Germany, Russia, India and the UK with exclusive access to over 550 staff. At present, the Company has offices and teams in New York, London, Frankfurt, Dusseldorf, Moscow, Kazan, New Delhi, Amsterdam and Limassol.