Brack Capital Properties N.V.

Climate Impact & Sustainability Data (2021, 2022, 2023)

Short-term Goals:

Continued development, marketing and handing over of apartments in the Grafental project in 2022.
Obtaining construction permits for stages J-K in the Grafental Ost project and commencing construction and marketing in 2022.
Approval of the city building plan for the Gerresheim project by the end of 2022.
Completion of the Aachen project and handover of apartments to tenants in 2022.

Delays in obtaining zoning plan approvals for the Gerresheim project due to objections from Deutsche Bahn AG.
The spread of the Corona virus and its macroeconomic implications on Germany and globally.
The Russian military invasion of Ukraine and its potential impact on raw material prices and global markets.

Discussions with the Düsseldorf municipality regarding dividing the zoning plan for the Gerresheim project.
Measures to reduce the Company's leverage and focus on residential real estate to mitigate the impact of the Corona crisis.
Monitoring the situation in Ukraine and assessing its potential impact on future operations.

Frameworks Used: IFRS

Challenges in receiving long-term financing from German banking corporations, partly due to the situation of ADLER, the controlling shareholder.
Changes in the real estate market in Germany and the capital market in Germany and the world also had a considerable effect on obtaining long-term financing.
Significant decline suffered by ADLER in the rating of its bonds and also the announcement by the rating company Maalot S&P about lowering the Company's rating to 'ilBBB-' and lowering the rating of the Company's bond series to 'ilBBB+' following its assessment that the Company has limited access to funding sources and its liquidity is weak.

Completed a private placement by expanding bonds (Series B) and raised an amount of approximately NIS 576 million (approximately EUR 163.5 million).
Entered into agreement with international banking corporation to obtain a credit in the amount of EUR 30 million (not utilized).
Entered into agreement with ADLER, the controlling shareholder to obtain a credit facility in a total amount of EUR 200 million.
Extended the repayment date of one of its loans by 3 years (EUR 29.2 million).
Completed the sale of residential real estate assets located in Leipzig at an asset value of approximately EUR 240.0 million.
Completed the sale of another property from the Company's income generating commercial real estate portfolio in the city of Ludwigsburg for a total of approximately EUR 12.8 million.
Entered into an agreement to extend the repayment date of one of the Company's loans (at a scope of EUR 34.5 million).
Examining the sale of additional assets from both the income generating and development portfolios.

Frameworks Used: IFRS

Third-party Assurance: Somekh Chaikin Certified Public Accountants (Isr.)

The war in Ukraine led to increased tensions, sanctions on Russia, and effects on raw material prices and transportation.
Rising interest and inflation rates worldwide impacted operating costs, raw material costs, labor costs, and financing costs.
The war in Israel impacted the Israeli economy, causing a slowdown in commercial activity and instability in capital markets.

The Company does not anticipate material impacts from the wars in Ukraine and Israel on its activities.
The Company is unable to assess the possible future impact of the hostilities and economic crisis.
The Company's diverse property portfolio is expected to limit the impact of inflation and interest rate increases.