The director presents his annual report and financial statements for the period ended 31 December 2024.

The principal activity of the company was that of property finance lending within the group that the company is part of.

The results for the period are set out on page 6.

No ordinary dividends were paid. The director does not recommend payment of a final dividend.

The director who held office during the period and up to the date of signature of the financial statements was as follows:

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom. Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, International Accounting Standard 1 requires that directors:

• properly select and apply accounting policies;

• present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;

• provide additional disclosures when compliance with the specific requirements in IFRSs are insufficient to enable users to understand the impact of particular transactions, other events and conditions on the entity's financial position and financial performance; and

• make an assessment of the company's ability to continue as a going concern.

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Each director in office at the date of approval of this annual report confirms that:

• so far as the director is aware, there is no relevant audit information of which the company's auditor is unaware, and

• the director has taken all the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.

This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

We have audited the financial statements of Finance UK Properties Limited (the 'company') for the period ended 31 December 2024 which comprise the income statement, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and UK adopted international accounting standards.

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its loss for the period then ended;

• have been properly prepared in accordance with UK adopted international accounting standards; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

• the information given in the director's report for the financial period for which the financial statements are prepared is consistent with the financial statements; and

• the director's report has been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the director's report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of director's remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit; or

• the director was not entitled to take advantage of the small companies exemption from the requirement to prepare a strategic report.

As explained more fully in the director's responsibilities statement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

• ensuring the engagement team collectively had the appropriate experience, competence, and skills to be able to detect irregularities, including fraud;

• considering the areas and transactions which may carry a higher level of susceptibility to fraud; and

• to focus on the specific laws and regulations, including industry laws, which we considered may have a material effect on the financial statements or the operations of the Company.

In response to the risk of irregularities, including fraud, and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

• agreeing financial statement disclosures to underlying supporting documentation;

• enquiring of management as to actual and potential litigation and claims;

• reviewing correspondence with HMRC,

• reviewing costs;

• considering audit evidence obtained in other testing areas to see if give rise to any indicators of non-compliance with relevant laws and regulations;

• making enquiries with directors and management of any known or alleged instances of fraud or non-compliance of specific laws and regulations, including industry laws; and

• auditing the risk of management override of controls, including through testing of adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council's website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

The income statement has been prepared on the basis that all operations are continuing operations.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

Finance UK Properties Limited is a private company limited by shares incorporated in England and Wales. The registered office is Elm Park House, Elm Park Court, Pinner, Middlesex, HA5 3NN. The principal place of business is The Alrov Tower, 46 Rothschild Blvd, 66883 Tel-Aviv, Israel.

The company's principal activities and nature of its operations are disclosed in the director's report.

The period cover by the financial statements is from the date of incorporation of 28 December 2023 to 31 December 2024, the period is slightly longer than a year due to it being the first period of financial statements.

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the United Kingdom and with the requirements of the Companies Act 2006 applicable to companies reporting under IFRS, except as otherwise stated.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

Finance UK Properties Limited is a wholly owned subsidiary of [Parent Name] and the results of Finance UK Properties Limited are included in the consolidated financial statements of [Parent Name] which are available from [Address].

The director has at the time of approving the financial statements, a reasonable expectation that the truecompany has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.

At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.

Financial assets are classified as at FVTPL when the financial asset is held for trading. This is the case if:

• the asset has been acquired principally for the purpose of selling in the near term, or

• on initial recognition it is part of a portfolio of identified financial instruments that the company manages together and has a recent actual pattern of short-term profit taking, or

• it is a derivative that is not designated and effective as a hedging instrument.

Financial assets at FVTPL are stated at fair value with any gains or losses arising on remeasurement recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any dividend or interest earned on the financial asset. Interest and dividends are included in 'Investment income' and gains and losses on remeasurement included in 'other gains and losses' in the statement of comprehensive income.

Financial assets with fixed or determinable payments and fixed maturity dates that the Company has the positive intent and ability to hold to maturity are classified as held to maturity investments.

Held to maturity investments are measured at amortised cost using the effective interest method less any impairment, with revenue recognised on an effective yield basis.

The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as loans and receivables. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

Debt instruments are classified as financial assets measured at fair value through other comprehensive income where the financial assets are held within the company’s business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

A debt instrument measured at fair value through other comprehensive income is recognised initially at fair value plus transaction costs directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognised through other comprehensive income are directly transferred to profit or loss when the debt instrument is derecognised.

Financial assets classified as available for sale are measured at fair value with gains and losses arising from changes in fair value recognised in other comprehensive income. Where an AFS financial asset is disposed of or determined to be impaired, the cumulative gain or loss previously recognised in other comprehensive income is reclassified to profit or loss.

Dividends and interest earned on AFS financial assets are included in the investment income line item in the statement of comprehensive income.

Financial assets carried at amortised cost and fair value through profit or loss are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been affected.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.

Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

In measuring the fair value of interest-free related party loans asset and liability on initial recognition, management estimates a market-based discount rate that reflects the credit risk, currency, term, and other characteristics of comparable instruments. Changes in these assumptions could result in a materially different fair value of the loans and corresponding capital contribution and distribution. A market rate of 5.778% was estimated by management based on SONIA GBP 5 years rate plus a 1.85% spread interest rate.

The average monthly number of persons (including directors) employed by the company during the period was:

The company made an interest-free loan to a subsidiary. On initial recognition, the loan was measured at fair value using a market-based discount rate applicable to similar instruments. The loan is subsequently measured at amortised cost using the effective interest.

The difference between the amount lent and the fair value on initial recognition amounted to £3,470,447 and has been recognised as a capital contribution to the subsidiary and has not affected the profit and loss.

Management exercised judgement in determining the appropriate market discount rate used to measure the fair value of interest-free related party loans on initial recognition.

The directors consider that the carrying amounts of financial assets carried at amortised cost in the financial statements approximate to their fair values.

Amounts due by subsidiary undertakings, as disclosed above, are classified as loans and receivables and are therefore measured at amortised cost.

Non-current receivables represents an secured loan to a fellow subsidiary of the ultimate parent company for the total sum of £20 million. This loan is interest free, repayable within 5 years other than by instalments and unsecured. Its maturity date is automatically extended by 1 year unless notified otherwise after the initial 5 year term. The balance has been discounted such that an effective market rate of interest of 5.778% per annum is chargeable and applied to the loan balance. The difference of £3,740,447 between the loan value and discounted carrying value at the period end has been shown as a capital contribution investment in the subsidiary.

The company was extended a back to back loan from the parent company on the same terms as shown under non-current liabilities.

Other borrowings in non-current liabilities represents an unsecured loan from the parent company for the total sum of £20 million. This loan is interest free, repayable within 5 years other than by instalments and unsecured. Its maturity date is automatically extended by 1 year unless notified otherwise after the initial 5 year term. The balance has been discounted such that an effective market rate of interest of 5.778% per annum is chargeable and applied to the loan balance. The difference of £3,740,447 etween the loan value and discounted carrying value at the period end has been shown as a capital contribution within a capital contribution reserve.

The company extended a back to back loan to a fellow subsidiary of the ultimate parent company on the same terms as shown under non-current assets.

The director considers that the carrying amounts of financial liabilities carried at amortised cost in the financial statements approximate to their fair values.

The following table details the remaining contractual maturity for the company's financial liabilities with agreed repayment periods. The contractual maturity is based on the earliest date on which the company may be required to pay.

Responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk management framework for the management of the company's funding and liquidity management requirements. The company's liquidity risk is considered low as borrowings match assets loans and are all within the group to which the company is part of, this also mitigates any credit risk on the asset loan.

The company has utilised tax losses of £8,000 and to which, based on the current principal activity of the company, it is currently assessed that the utilisation will be remote unless they are surrendered to fellow group companies in the future. Therefore no deferred tax asset has been provided for.

The company has one class of ordinary shares which carry full rights in the company with respect to voting, dividends an distributions.

Capital contribution reserve

The company received an interest-free loan from its parent company. On initial recognition, the loan was measured at fair value using a market-based discount rate applicable to similar instruments. The loan is subsequently measured at amortised cost using the effective interest method.

The difference between the proceeds received and the fair value on initial recognition amounted to £3,470,447 and has been recognised as a capital contribution from the parent in equity, as the loan is provided in the parent’s capacity as shareholder.

Management exercised judgement in determining the appropriate market discount rate used to measure the fair value of interest-free related party loans on initial recognition.

The company is not subject to any externally imposed capital requirements.

The remuneration of key management personnel, including directors, is set out below in aggregate for each of the categories specified in IAS 24 Related Party Disclosures.

The following amounts were outstanding at the reporting end date:

The terms of the amount due to the parent company are outlined under note 9 of the financial statements.

The following amounts were outstanding at the reporting end date:

The amounts owed by the parent have no set terms and is interest free.

The terms of the amount due from the subsidiary are outlined under note 8 of the financial statements.

The immediate parent company is Alrov Mamilla Commercial Zone (1993) Ltd, a company incorporated in the Israel.

The ultimate parent company is Alrov Properties and Lodgings Limited, a company incorporated in Israel, which is the largest group that the company is consolidated into.

Consolidated accounts are produced by Alrov Properties and Lodgings Limited, and copies are available to the public by downloading from their website at alrov.co.il or at its registered address at; The Alrov Tower, 46 Rothschild Blvd, 66883 Tel-Aviv, Israel.

During the period the company entered into a back-to-back funding arrangement whereby an interest-free loan of £20 million was received from the parent company and advanced directly to a subsidiary. As the transaction did not result in any cash inflow or outflow to the company, it has been excluded from the statement of cash flows.

The transaction resulted in the recognition of a financial liability to the parent and a financial asset in respect of the subsidiary, with no impact on cash or cash equivalents.

During the period the company entered into a back-to-back funding arrangement whereby an interest-free loan of £20 million was received from the parent company and advanced directly to a subsidiary. As the transaction did not result in any cash inflow or outflow to the company, it has been excluded from the statement of cash flows.

The transaction resulted in the recognition of a financial liability to the parent and a financial asset in respect of the subsidiary, with no impact on cash or cash equivalents.