Sale of Property

11 October 2013

Japan Residential Investment Company Limited

(the "Company")

Sale of Property - Cradle Uemachi II

The Company announces the sale of Cradle Uemachi II for ¥307.6 million (£2.0 million), a 26.1% premium to the latest valuation.

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 Company is pleased to announce the sale today of Cradle Uemachi II (the "Property"), a 25 unit apartment building located in Chuo Ward, Osaka. The sale price of ¥307.6 million (£2.0 million), excluding taxes and sales costs, represents a 26.1% premium over the Property's latest valuation of ¥244 million (£1.6 million) as at 31 May 2013.

Alec Menikoff, Managing Director, Halifax Asset Management, said "Market conditions in Osaka and other regional areas of Japan continue to improve as demonstrated by this sale at a substantial premium to appraisal value."

The Fund has now sold four assets year-to-date for ¥1,608 million (£10.3 million) representing a 24.5% premium to appraisal value. These transactions are part of the Fund's capital rotation strategy where select non-core assets are sold and proceeds used to purchase assets that enhance operating efficiency, income, and overall portfolio quality.

Note: Sterling denominated values are based on an exchange rate of ¥155.93/£1.

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