Completion of Portfolio Acquisition

5 March 2014

Japan Residential Investment Company Limited

(the "Company")

Completion of Portfolio 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".

Further to the Company's announcement of 28 February, the Fund completed today the acquisition of six residential apartment buildings (the "Portfolio") for a total purchase price of ¥7,420 million (£43.6 million), excluding tax and other acquisition expenses. The Portfolio has been externally valued at ¥7,415 million (£43.6 million).

In conjunction with this acquisition, the Fund today obtained debt financing in the form of a loan from Resona Bank, Ltd. in the amount of ¥5,500 million (£32.4 million). The 7-year loan has a floating interest rate of 0.56% per annum (calculated as a 0.35% premium over the 3-month yen TIBOR) which has been capped at 0.75%. The loan is collateralized by the Portfolio as well as two other recently acquired assets, Regalia Toritsudai Residence and East Village Sannomiya, for a loan-to-value ("LTV") ratio of 61.5%.

With these acquisitions and this new financing, the Company will have an LTV ratio at the Fund level of 60.1%. Gearing (calculated as net debt as a proportion of total assets less cash and restricted reserves) at the Fund level will be approximately 50.9%. This refinancing reduces the weighted average interest rate of the Fund from 0.97% to 0.88% and increases the average maturity on loans outstanding from 3.8 to 4.5 years.

Alec Menikoff, Managing Director, Halifax Asset Management said, "These financing terms including seven year debt at reduced interest rates reflects further improvements in the credit market in Japan as well as the high quality of the underlying collateral assets."

Note: Sterling equivalent values are based on an exchange rate of ¥170.00/£1.

Enquiries