Sale of Property

2 April 2013

Japan Residential Investment Company Limited ("the Company")

Sale of property - Branche Kugayama

The Company announces the sale of Branche Kugayama for ¥580 million (£4.1 million), a 19.3% 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 Fund has contracted for the sale of Branche Kugayama - a 24 unit apartment building located in Suginami Ward, Tokyo. Completion is scheduled for 8 April 2013.

The sale price of ¥580 million (£4.1 million) excluding taxes and sales costs represents a 19.3% premium over the asset's latest valuation as at 30 November 2012, and an initial net yield of 4.4% for the purchaser.

This transaction is part of a capital rotation strategy aimed at selling select non-core assets and reallocating proceeds to the purchase of high quality assets with greater prospects for income and value growth. The strategy commenced in June with the purchase of a central Tokyo property for ¥955 million (£6.7 million) at an estimated prospective net operating yield of 5.6%.

Alec Menikoff, Managing Director, Halifax Asset Management said, "Intense demand for smaller properties from individual private investors presents an opportunity for the Fund to trade into larger, more efficient assets in a way that is income accretive and value enhancing."

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