JRIC.L Regulatory News (JRIC)

27 March 2014

Japan Residential Investment Company Limited

(the "Company")

Completion of Property Acquisition and Arrangement of Debt Financing

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 Company announced on 28 February 2014 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. Completion on the purchase of six of the properties in the Portfolio occurred on 5 March 2014 and was announced on the same day. The Company now wishes to announce that it has today completed the acquisition of the seventh and final property in the Portfolio, Grace Court Shimura Sanchome (the "Property"), for a purchase price of ¥2,014 million (£11.9 million), excluding tax and other acquisition expenses. The Property was externally valued at ¥2,090 million (£12.4 million), a 3.8% premium to the purchase price.

In conjunction with this acquisition, the Fund today obtained a loan in the amount of ¥1,350 million (£8.0 million). This loan has been extended by licensed lending businesses in Japan that are affiliates of U.S.-based Prudential Financial, Inc. (NYSE: PRU). The 7-year loan has a fixed interest rate of 1.50% per annum and a loan-to-value ("LTV") ratio of 64.6%. The lender is not affiliated in any manner with Prudential plc of the UK.

With these acquisitions and this new financing, the Company will have an LTV ratio at the Fund level of 60.3%. Gearing (calculated as net debt as a proportion of total assets less cash and restricted reserves) at the Fund level will be approximately 52.6%. The weighted average interest rate of the Fund will be 0.91% and the average maturity on loans outstanding is 4.6 years.

Raymond Apsey, Chairman, said, "With the successful completion of this transaction, the Fund has closed on a total £65 million in new acquisitions over the past three months. Proceeds from the recent capital raise in October 2013 have now been fully deployed."

Note: Sterling equivalent values are based on an exchange rate of ¥169.00/£1.

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