Acquisition of Property

27 December 2013

Japan Residential Investment Company Limited

(the "Company")

Acquisition of Property

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".

On 25 December 2013, the Fund acquired East Village Sannomiya (the "Property"), a 61-unit apartment complex, in an all-cash transaction. The purchase price, excluding tax and other acquisition costs, was ¥796 million (£4.68 million), a 2.3% discount to a recent externally appraised value. The Property has an estimated prospective net operating yield of 5.9%.

Built in 2011, the Property has 1,612 square meters of leasable area. It is in close proximity to Kobe business and leisure districts and a 5-minute walk from Sannomiya Station, the major train terminal in Kobe City.

Alec Menikoff, Managing Director, Halifax Asset Management said, "East Village Sannomiya - a newer property with a central location and attractive design features - represents a quality-enhancing addition to the Fund portfolio."

The Fund's Investment Adviser continues to progress a strong pipeline of quality residential assets with a view toward achieving full investment of the recent capital raise proceeds in the near term.

Note: Sterling denominated purchase price value is based on an exchange rate of ¥170.04/£1.

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