JRIC.L Regulatory News (JRIC)

28 February 2014

Japan Residential Investment Company Limited

(the "Company")

Acquisition of Portfolio

Japan Residential Investment Company Limited (AIM: JRIC) is a closed-ended Guernsey registered company established to make and hold investments in residential property in Japan. The Company, its subsidiaries and entities in which it has a beneficial interest are referred to collectively as the "Fund".

The Fund contracted today for the purchase of seven residential apartment buildings (the "Portfolio"), with a total purchase price of ¥9,434 million (£55.3 million), excluding tax and other acquisition expenses. The Fund is scheduled to complete on six of the seven properties - priced at ¥7,420 million (£43.5 million) - on 5 March 2014. Purchase of the seventh asset priced at ¥2,014 million (£11.8 million) is scheduled to close on or around 31 March 2014. The Portfolio is being purchased from entities managed by Asia Pacific Land (Japan) Limited, and has been externally valued recently at ¥9,505 million (£55.7 million).

By value, 93% of the Portfolio properties are located within the 23 Wards of Tokyo. With the acquisition of the Portfolio, the Fund allocation to the Tokyo market will increase from 48% as at November 2013 to 59% based on the most recent external property appraisals.

The Portfolio consists of 419 rentable units and 15,077 square meters of leasable area. The weighted average age of the properties is 10.4years. The properties are well located offering excellent mass transit access due to their close proximity to subway, train or bus lines. The estimated prospective net operating yield of the Portfolio is 5.2% (based on estimated net operating income of ¥488 million (£2.9 million)).

Alec Menikoff, Managing Director, Halifax Asset Management said, "I am delighted with this transaction which represents the full allocation of proceeds from recent equity placings in a manner that enhances earnings and the Fund's position in the Tokyo market. This acquisition represents the addition of another 7 high quality apartment buildings in line with our stated strategy."

Note: Sterling equivalent values are based on an exchange rate of ¥170.57/£1.

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