Refinancing of Loan

28 September 2010

Japan Residential Investment Company Limited ("the Company")

Refinancing of Loan

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 27 September 2010, the Fund entered into an agreement with Mizuho Bank for a loan of JPY 3,300 million (GBP 25 million). The four year term loan will be drawn down on 29 September 2010 and carries a floating interest rate consisting of a spread of 1.50% plus the prevailing 3-month yen TIBOR, currently 0.36%. The loan, which has an amortization requirement of JPY 90 million (GBP 0.7 million) per annum, is secured by 7 properties externally valued at JPY 7,154 million (GBP 54 million) as at 31 May 2010, for a loan-to-value ("LTV") of 46.1%.

In conjunction with this financing, the Fund will repay all debt outstanding with Tokyo Star Bank in the amount of JPY 5,104 million (GBP 38 million) that was previously scheduled to mature between February and July 2011. With this financing, Fund debt totals JPY 20,129 million (GBP 151 million) against properties valued at JPY 31,643 million (GBP 237 million) as at 31 May 2010 for an LTV of 63.6%.

The next debt maturity is JPY 10,000 million (GBP 75 million) in May 2012. The Investment Advisor is currently in discussion with the lender regarding a voluntary, partial pay down of this debt. Details of these discussions will be announced in due course, as appropriate.

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