Sale of Asset

1 June 2010

Japan Residential Investment Company Limited ("the Company")

Notice Concerning the Sale of Asset

Japan Residential Investment Company Limited is a closed ended Guernsey registered company. The Company, its subsidiaries and entities in which it has a beneficial interest are referred to collectively as "the Fund". The Fund was established to make, manage, and hold investments in residential property in Japan.

The Company announces the sale of Cradle Shitenoji, one of the properties in the Fund portfolio. The property which is located in Osaka was sold for ¥319 million (£2.43 million) excluding taxes and sales costs, on 31 May 2010. The price paid represents an initial net yield of 6.2%.

This property was externally appraised at ¥312 million (£2.38 million) as at 28 February 2010. The transaction is part of a strategy to reduce non-core asset holdings when this can be achieved at acceptable price levels. Proceeds from this sale will be used to pay down debt thereby reducing leverage on the portfolio.

Note: £ denominated values are based on an exchange rate of ¥131.093/£

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