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2016-11-15

Gazit Globe Announces the Merger Transaction of its US Subsidiary Equity One (NYSE: EQY) with Regency Centers Corporation (NYSE: REG)

Gazit-Globe
Press release

Gazit Globe Announces the Merger Transaction of its US Subsidiary Equity One
(NYSE: EQY) with Regency Centers Corporation (NYSE: REG)

The Merger Creates the Largest High Quality Shopping Center REIT in the US with
an Enterprise Value of approx. US$ 15.6 Billion

The transaction will generate a net gain of approx. NIS 1 billion for Gazit
Globe

-- Gazit-Globe will be the largest shareholder in the merged company
-- The transaction reflects a premium of approximately 13.7% on EQY shares

TEL-AVIV, Israel, Nov. 15, 2016 (GLOBE NEWSWIRE) -- Gazit-Globe (NYSE:GZT)
(TSX:GZT) (TASE:GZT), one of the leading global real estate companies focused
on the ownership, management, acquisition, development and redevelopment of
supermarket-anchored shopping centers in major urban markets, announced today
that its US subsidiary Equity One (NYSE:EQY) has entered into a merger
agreement with Regency Centers Corporation (NYSE:REG). The merger will create
the largest high quality shopping center REIT in the US with a combined equity
market cap of approx. US$ 11.7 billion and enterprise value of approx. US$ 15.6
billion.

Gazit-Globe will be the largest shareholder in the merged company and will hold
approximately 13.2% of the shares. Chaim Katzman, Chairman of Gazit, who has
until now served as Chairman of Equity One, will serve as Vice Chairman of the
merged company. Two independent directors from Equity One board will also be
added to the board of Regency. The share exchange transaction reflects a US$
4.6 billion equity value for EQY and represents an approximately 13.7% premium
(as of November 14, 2016). The transaction is expected to close in the first
quarter or early in the second quarter of 2017, and is anticipated to generate
a net gain of approx. NIS 1 billion for Gazit Globe. It is also subject to
certain closing conditions, including shareholder approval of both companies.

This transaction will create a better, stronger and more diversified company
for all shareholders. The merged entity will create additional value through
the following key factors:

-- The combined company with a portfolio of complimentary assets will have an
enhanced presence in both the real estate and capital markets.
-- The merged company will have 5.4 million square meters of leased GLA (1)
-- Operational efficiencies and synergies in assets and property management,
as well as corporate G&A is expected to exceed NIS 100 million
annually;
-- The merger will strengthen the Company’s position vis-à-vis its tenants, as
well as its leasing and asset management activities.

The transaction will result in the following for Gazit Globe’s Shareholders:

-- Generates a significant premium above market value of Equity One’s shares
for all shareholders.
-- A net gain of NIS 1 billion to Gazit Globe, NIS 5 per share.
-- As a result of the merger transaction the annual dividend from the merged
entity will immediately increase by approx. 2.3% for all EQY shareholders.
-- Reduces leverage on a stand-alone basis.
-- Gazit Globe corporate level cost and accounting expense savings of
approximately NIS 6 million NIS annually.
-- Improved liquidity of its shares, with an expected combined daily trading
liquidity in excess of US $80 million.
-- Greater geographic and tenant diversification leading to a significant
reduction in the risk profile of the combined company.
-- Gazit-Globe will be the largest shareholder in the merged company.
-- A merger transaction which does not carry any immediate tax consequences.

Chaim Katzman, Chairman of Gazit-Globe and Equity One: “I am very pleased with
this merger transaction announced today. This is a major deal that will create
the highest quality and largest shopping center company in the US. EQY shares
acquired by REG at a premium of 13.7% to the market price is a reflection of
the quality of EQY’s assets and the faith of REG in the company’s full
potential. EQY has grown for two and a half decades from a single asset worth
US$ 4.5 million to now being merged with REG in a transaction that results in
an implied market capitalization of US$ 4.6 billion. The merged company will be
the largest of its kind in North America with assets of more than US$ 15
billion and Gazit-Globe will be its largest shareholder. This transaction
creates value for EQY’s shareholders including Gazit Globe and I am confident
that we will continue to maximize value for our shareholders as well as for all
shareholders of our subsidiaries in the future.”

Rachel Lavine, CEO of Gazit-Globe: “This transaction results in a number of
compelling benefits for Gazit Globe, including a net gain of NIS 1 billion, NIS
5 per share, as well as annual savings totaling approximately NIS 6 million in
Gazit Globe corporate expenses. I am convinced that this transaction will be
followed by additional measures taken to further realize our long term
objective of creating value for our shareholders.”

CONFERENCE CALL INFORMATION

Gazit-Globe will host a conference call in English on Tuesday, November 15,
2016 at 4:00 pm Israel Time / 3:00 pm Central European Time / 9:00 am Eastern
Time.

Shareholders, analysts and other interested parties can access the conference
call by dialing: United States 1888 281 1167, Canada 1866 485 2399, United
Kingdom 0800 917 5108, International / Israel +972 3 9180608

FORWARD LOOKING STATEMENTS

This release may contain forward-looking statements within the meaning of
applicable securities laws. In the United States, these statements are made
pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Such statements involve a number of known and unknown risks
and uncertainties, many of which are outside our control, that could cause our
future results, performance or achievements to differ significantly from the
results, performance or achievements expressed or implied by such
forward-looking statements. Important factors that could cause or contribute to
such differences include risks detailed in our public filings with the SEC and
the Canadian Securities Administrators. Except as required by applicable law,
we undertake no obligation to update any forward-looking or other statements
herein, whether as a result of new information, future events or otherwise.

About Gazit-Globe

Gazit-Globe is one of the largest owners, developers and operators of
predominantly supermarket-anchored shopping centers in major urban markets
around the world. Gazit-Globe is listed on the New York Stock Exchange
(NYSE:GZT), the Toronto Stock Exchange (TSX:GZT) and the Tel Aviv Stock
Exchange (TASE:GZT) and is included in the TA-25 and Real-Estate 15 indices in
Israel. As of June 30, 2016 Gazit-Globe owns and operates 429 properties in
more than 20 countries, with a gross leasable area of approximately 6.5 million
square meters and a total value of approximately US$ 21.5 billion.

For more information: www.gazit-globe.com

About Regency Centers Corporation

With more than 50 years of experience, Regency is the preeminent national
owner, operator and developer of high-quality, grocery anchored neighborhood
and community shopping centers. The Company’s portfolio of 307 retail
properties encompasses over 42.1 million square feet located in top areas
throughout the United States, including co-investment partnerships. Regency has
developed 223 shopping centers since 2000, representing an investment at
completion of more than $3 billion.

For more information: www.regencycenters.com

About Equity One

As of September 30, 2016, the company’s portfolio comprised 122 properties,
including 98 retail properties and five non-retail properties totaling
approximately 12.3 million square feet of gross leasable area, or GLA, 13
development or redevelopment properties with approximately 2.8 million square
feet of GLA, and six land parcels. As of September 30, 2016, the company’s
retail occupancy excluding developments and redevelopments was 95.4% and
included national, regional and local tenants. Additionally, the company had
joint venture interests in six retail properties and two office buildings
totaling approximately 1.4 million square feet of GLA.

For more information: www.equityone.com.

FOR ADDITIONAL INFORMATION

Investors Contact: IR@gazitgroup.com, Media Contact: Press@gazitgroup.com

(1) Including 100% of jointly owned properties

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