Further re Refinancing of Debt

16 February 2012

Japan Residential Investment Company Limited ("the Company")

Refinancing of Debt

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 announcement on 24 January 2012, the Fund is pleased to announce the successful draw down of loans totalling ¥7,000 million (£57 million) (the "Loans") from Resona Bank, Ltd. ("Resona"). In conjunction with these loans, the Fund repaid all debt outstanding to ORIX Corporation and DB Trust Bank in the amount of ¥7,000 million (£57 million).

The new 5-year term loans have a combined loan-to-value ratio ("LTV") of 61% based on November 2011 valuations and carry a fixed interest rate of 1.58%.

Alec Menikoff, Managing Director of the Fund's Investment Adviser, KK Halifax Asset Management, said, "These debt terms reflect the strength of the Japanese credit markets as well as the improved outlook for Japanese residential property."

Post refinancing, the Fund has a weighted average interest cost of 1.91%. The Fund holds debt totalling ¥16,475 million (£133 million) and has an LTV of 53% based on portfolio value as at 30 November 2011. Gearing is 46%, calculated as total debt less cash and restricted reserves as a proportion of investment property. The Fund's weighted average debt maturity is 3.3 years. There is no further debt maturing until December 2013.

Note: Sterling denominated values are based on an exchange rate of ¥123.5219/£1.

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