Acquisition of Property

18 September 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".

The Fund has contracted for the purchase of G-FLAT (the "Property"), a residential property located in Ota Ward, Tokyo (the "Acquisition"). The Acquisition is scheduled to close on 20 September 2013.

The 47 unit property was built in March 2006 and has 2,245 square meters of leasable area. It is located in a popular residential area with excellent mass transit access and close proximity to a wide variety of shops and restaurants. The Property is 3 minutes walking distance from Senzoku Station on the Tokyu Meguro Line, providing convenient access to Tokyo's financial district as well as the popular Jiyugaoka and Meguro shopping and leisure districts.

The price under contract for the Property, excluding tax and other acquisition costs is ¥1,460 million (£9.3 million). The Property - externally valued at ¥1,510 million (£9.6 million) as at 1 August 2013 - represents approximately 4.4% of the total Fund portfolio.

The Property has an estimated prospective net operating yield of 5.1%. The Acquisition will increase the Fund's exposure to the Tokyo market and is expected to be accretive to earnings while enhancing overall portfolio quality.

Note: Sterling denominated portfolio values are based on an exchange rate of ¥157.66/£1.

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