JRIC.L Regulatory News (JRIC)

23 September 2013

Japan Residential Investment Company Limited

(the "Company")

Drawdown of Debt Financing and Completion of Property Acquisition

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".

Further to the Company's announcement of 19 September 2013, the Fund is pleased to announce the drawdown of the ¥5,300 million (£33.23 million) of debt refinancing loans from Mizuho Bank, Ltd. ("Mizuho"). The loans carry a floating interest rate, currently 0.55% per annum. Commencing October 2013, the interest rate will be calculated as a 40bps premium over the 3-month yen TIBOR; based on current market rates this would be equivalent to 0.63% per annum.

In conjunction with this drawdown, the Fund has repaid the previous loan outstanding to Mizuho Bank which was scheduled to mature in September 2014. This loan totalled ¥3,053 million (£19.14 million) and had a blended average interest rate of 1.73%. Net proceeds from the drawdown of this loan will be used to fund new property acquisitions.

Also in conjunction with this refinancing, and further to the Company's announcement of 18 September 2013, the Fund has completed the acquisition of G-FLAT (the "Property"), a 47-unit residential asset located in Ota Ward, Tokyo. The price under contract for the Property, excluding tax and other acquisition costs is ¥1,460 million (£9.15 million). The Property was externally valued at ¥1,510 million (£9.47 million) and has an estimated prospective net operating yield of 5.1%.

Note: Sterling denominated values are based on an exchange rate of ¥159.49/£1.

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