Sale of Property

26 September 2014

Japan Residential Investment Company Limited

(the "Company")

Completion of Portfolio Asset Sale - Branche Kanamecho IV

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 completed today as scheduled the sale of Branche Kanamecho IV - a 20 unit apartment building located in Toshima Ward, Tokyo. The sale contract was announced by the Company on 18 August 2014.

The sale price of ¥550 million (£3.10 million) excluding taxes and sales costs represents a 34.1% premium over the asset's latest valuation as at 31 May 2014 and an initial net yield of 3.6% for the purchaser. The sales price represents a 42.1% premium over the initial purchase price of ¥387 million (£2.18 million) in December 2007.

The transaction is part of an ongoing capital rotation strategy aimed at selling smaller non-core assets and reallocating proceeds to the purchase of high quality assets for increased operating efficiency, higher yield and greater prospects for capital appreciation. Alec Menikoff, Managing Director, Halifax Asset Management said, "The market in Japan for smaller, income-generating properties is exceptionally strong and we will continue to exit non-core holdings opportunistically while we focus on positioning the Fund for further growth."

Note: Sterling denominated values are based on an exchange rate of ¥177.60/£1.

Enquiries