Sale of Property

1 September 2015

Japan Residential Investment Company Limited

(the "Company")

Sale of Property - Modulor Gakuenmae

The Company announces the sale of Modulor Gakuenmae for ¥462 million (£2.5 million), a 32.4% premium to the latest valuation.

Japan Residential Investment Company Limited (AIM: JRIC) is a closed-ended Guernsey incorporated 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 31 August 2015, the Fund contracted for the sale of Modulor Gakuenmae - a 48 unit apartment building located in Toyohira Ward, Sapporo. Completion is scheduled to take place on or before 31 October 2015.

The sale price of ¥462 million (£2.5 million) excluding taxes and sales costs represents a 32.4% premium over the asset's latest independent, external valuation of ¥349 million (£1.9 million) as at 31 May 2015. After the repayment of debt in the amount of ¥220 million (£1.2 million), taxes and sale costs, the net proceeds of the sale to the Fund are expected to be approximately ¥227 million (£1.2 million) which will be held in cash reserves.

Since initiating its capital rotation strategy in April 2013, the Fund has arranged the sale of six assets for ¥2,620 million (£14.0 million) in aggregate at an average premium to appraisal value of 28%.

Alec Menikoff, Managing Director, Halifax Asset Management, said "The premium for this property is the highest achieved by the Fund to date for a regional asset sale. With net annual rental income from Modulor Gakuenmae of ¥22.4 million (£0.1 million), the sale price represents an exit yield of 4.9% against the Fund's carrying yield for the property of 6.4%."

Note: Sterling denominated values are based on an exchange rate of ¥186.92/£.

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