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Gazit-Globe and First Capital Realty Announce Proposal to Take Gazit America Private and the Acquisition of Gazit America's Medical Office and Retail Properties by First Capital Realty

TEL-AVIV, Israel, May 6, 2012 (GLOBE NEWSWIRE) -- Gazit-Globe (TASE:GLOB) (NYSE:GZT), one of the largest owners and operators of supermarket-anchored shopping centers in the world, announces that on Friday, May 4, 2012, it has submitted, together with First Capital Realty (TSX:FCR), a non-binding preliminary proposal to Gazit America (TSX:GAA) with respect to the acquisition by Gazit-Globe of all of the common shares of Gazit America not already beneficially owned by Gazit-Globe (approximately 26.9%) for consideration valued at CAD $7.07 for each share of Gazit America, payable in cash and common shares of First Capital Realty. The consideration will include a cash portion of CAD $2.90 and a 0.2222 of First Capital Realty common share (for each share of Gazit America).



As part of the preliminary proposal, First Capital Realty offered to purchase the shares of Gazit America's subsidiary, ProMed Properties (CA), which owns 12 medical office and retail properties in Canada and a 50% interest in an additional property jointly owned with First Capital Realty, totaling approximately 86,000 square meters (approximately 930,000 square feet) of leasable space and includes mortgages on the properties, for total consideration of approximately CAD $97.1 million. Payment for ProMed Properties (CA) shares will be made by approximately 5.2 million of First Capital Realty common shares.   

In addition to its medical office operation, Gazit America owns approximately 12.5% of Equity One, the U.S. subsidiary of Gazit-Globe. Assuming acceptance of this proposal, these shares will be fully owned by Gazit-Globe.

The proposal represents a premium of 43.8% to the 20-trading day volume-weighted price of the common shares of Gazit America. The cash payment and the amount of First Capital Realty's common shares to be allocated will be subject to certain adjustments related to First Capital Realty and Equity One share prices. 

Roni Soffer, President of Gazit-Globe said: "This arrangement proposal represents a win-win  situation for all parties. Gazit America's shareholders will be able to realize a significant premium on their common shares, First Capital Realty will acquire a quality portfolio of medical office and retail assets at a fair price, and the resulting structure will be simplified and provide for increased corporate and operational efficiency from Gazit-Globe's perspective."

A conference call regarding the transaction will be held on Monday, May 7, 2012 at 8:30 a.m. Eastern Daylight Time/ 1:30 p.m. United Kingdom/ 2:30 p.m. Central European Time/ 3:30 p.m. Israel Time.

For more details about the proposal and dial-in information, please click on the following link: http://www.firstcapitalrealty.ca/files/news/May%204,%202012%20-%20PROPOSED%20TRANSACTION%20RE%20GAZIT%20AMERICA%20-%20FINAL.pdf

To view a file of the Gazit-Globe transaction please visit https://media.globenewswire.com/cache/14842/file/13637.pdf

About Gazit-Globe

Gazit-Globe is one of the largest owners and operators of supermarket-anchored shopping centers in the world. In addition, Gazit-Globe is active in North America in the healthcare real estate sector. Gazit-Globe is listed on the Tel Aviv Stock Exchange (TASE:GLOB) and is included in the TA-25 and the Real-Estate 15 indices in Israel. Gazit-Globe is also listed on the New York Stock Exchange (NYSE:GZT). The group operates properties with a total value of approximately USD$18.5 billion in more than 20 countries and owns and operates over 600 properties with a gross leasable area of approximately 73 million square feet (approximately 6.8 million square meters).

Forward-Looking Statements

This press release contains forward-looking statements and information within the meaning of applicable securities law. Forward-looking statements can be identified by the expressions "expects", "estimates", "will" and similar expressions. The forward-looking statements are not historical facts but reflect the current expectations of Gazit-Globe and First Capital Realty, as applicable, regarding future results or events and are based on information currently available to management of such entities.

Management of each of Gazit-Globe and First Capital Realty believe that the expectations reflected in forward-looking statements are based upon reasonable assumptions; however, management of such entities can give no assurance that the actual results or developments will be consistent with these forward-looking statements. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Factors that could cause actual results or events to differ materially from those expressed, implied or projected by forward-looking statements include, but are not limited to, risks associated with negotiating definitive agreements and satisfying approvals and other conditions for such a transaction, share price volatility for First Capital Realty and Equity One, Inc. and general economic conditions. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made. Each of Gazit-Globe and First Capital Realty undertakes no obligation to publicly update any such statement or to reflect new information or the occurrence of future events or circumstances except as required by applicable securities law.

All forward-looking statements in this press release are made as of the date hereof and are qualified by these cautionary statements.

CONTACT: Media Contact: press@gazitgroup.com
         Investors Contact: IR@gazitgroup.com
         Gazit-Globe Headquarters
         1 HaShalom Rd.
         Tel-Aviv, Israel
         Tel: +972 3 6948000

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