平成18年4月●日 For Immediate Release

March 9, 2015
Investment Corporation: Daiwa House Residential Investment Corporation
7th Floor, Nissei Nagatacho Building
2-4-8 Nagatacho, Chiyoda-ku, Tokyo Tetsuji Tada, Executive Director (Code Number: 8984)
Asset Manager: Daiwa House Asset Management Co., Ltd.
Koichi Tsuchida, CEO & President
Inquiries: Hirotaka Uruma, CFO & Director Finance & Corporate Planning Department TEL: +81-3-3595-1265

Notice Concerning Issuance of New Investment Units and Secondary Offering of Investment Units

Daiwa House Residential Investment Corporation ("DHI") announces that the resolution was passed at a board of directors meeting held on March 9, 2015 to issue new investment units and conduct secondary offering. The details are as follows.
1. Issuance of New Investment Units through Public Offering (Primary Offering)

(1)

Number of investment units to be offered:

36,000 units

(2)

Issue price (Offer price):

To be determined

The issue price (offer price) shall be determined by taking the price arrived at when the closing price in regular trading of the

investment units of DHI (the "DHI investment units") on the

Tokyo Stock Exchange, Inc. on any day between March 18,

2015 (Wednesday) and March 24, 2015 (Tuesday) (the "Pricing Date") (when there is no closing price on that day, the closing price on the most recent day preceding that day) is multiplied by a factor between 0.90 and 1.00 (price shall be rounded down to the nearest 1 yen) as the provisional condition, in accordance with the method stated in Article 25 of the Regulations Concerning Underwriting, etc. of Securities provided by the Japan Securities Dealers Association, then taking the demand conditions and other factors into account.

This document is a press release to make a public announcement of the issuance of new investment units and secondary offering of investment units of Daiwa House Residential Investment Corporation, and has not been prepared as a solicitation for investment. DHI cautions investors to ensure that they refer to the prospectus for notification of the issuance of new investment units and secondary offering of investment units as well as amendments thereto prepared by DHI (if such have been prepared) before undertaking investments and investments be made at their own discretion and responsibility.

This English language notice is a translation of the Japanese language notice issued on the same day and was prepared solely for the convenie nce of, and reference by, overseas investors. DHI makes no warranties as to its accuracy or completeness.

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(3)

Paid-in amount (Issue value):

To be determined

The paid-in amount (issue value) shall be determined on the Pricing Date in accordance with the method stated in Article 25 of the Regulations Concerning Underwriting, etc. of Securities provided by the Japan Securities Dealers Association. Please note that the paid-in amount (issue value) refers to the amount per DHI investment unit that DHI is to receive as the amount paid in for new investment units.

(4)

Total paid-in amount (issue value):

To be determined

(5)

Offering method:

The offering shall be a primary offering in which all DHI

investment units subject to the primary offering shall be purchased and underwritten by an underwriting syndicate of which Daiwa Securities Co. Ltd., Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. and Nomura Securities Co., Ltd. are the joint lead managers (collectively referred to as the "Joint Lead Managers"). The underwriters other than the Joint Lead Managers shall be SMBC Nikko Securities Inc. and Mizuho Securities Co., Ltd. (collectively referred to with the Joint Lead Managers as the "Underwriters").

(6)

Underwriting agreement details:

The Underwriters shall purchase and underwrite DHI investment

units at the issue value determined on the Pricing Date, and conduct a primary offering at an amount that differs to the

concerned issue value (issue price). DHI shall not pay an underwriting fee to the Underwriters. However, the Underwriters shall pay in the total paid-in amount (issue value) on the payment

date stated in (9) below, and the difference between the total issue price (offer price) and total paid-in amount (issue value) shall be the proceeds of the Underwriters.

(7)

Subscription unit:

1 unit or more in multiples of 1 unit

(8)

Subscription period:

The subscription period shall be between the business day

following the Pricing Date and the date that marks two business days after the Pricing Date.

(9)

Payment date:

The payment date shall be any day between March 25, 2015 (Wednesday) and March 30, 2015 (Monday). However, the date shall be five business days after the Pricing Date, except when the Pricing Date is March 24, 2015 (Tuesday) in which case the date shall be four business days after the Pricing Date.

(10)

Transfer date:

The transfer date shall be the business day following the

payment date.

(11)

The issue price (offer price), paid-in amount (issue value) and other matters necessary for this issuance of

new investment units shall be determined at a future meeting of the board of directors.

(12)

Each of the items above is subject to the condition that the securities registration document filed in

accordancewith the Financial Instruments and Exchange Act takes effect.

This document is a press release to make a public announcement of the issuance of new investment units and secondary offering of investment units of Daiwa House Residential Investment Corporation, and has not been prepared as a solicitation for investment. DHI cautions investors to ensure that they refer to the prospectus for notification of the issuance of new investment units and secondary offering of investment units as well as amendments thereto prepared by DHI (if such have been prepared) before undertaking investments and investments be made at their own discretion and responsibility.

This English language notice is a translation of the Japanese language notice issued on the same day and was prepared solely for the convenie nce of, and reference by, overseas investors. DHI makes no warranties as to its accuracy or completeness.

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2. Secondary Offering (Secondary Offering through Over-Allotment) (Please refer to 1. below.)

(1)

Seller:

Daiwa Securities Co. Ltd.

(2)

Number of investment units to be sold:

3,600 units

The number of investment units to be sold above indicates the maximum number of investment units

of the secondary offering through over-allotment.

There may be cases where the number is reduced in light of demand conditions and other factors, or

there may be cases where the secondary offering

through over-allotment itself does not take place at all. The number of investment units to be sold shall

be determined on the Pricing Date, taking the

demand conditions and other factors into account.

(3)

Selling price:

To be determined

The selling price shall be determined on the Pricing

Date. Please note that the selling price shall be the same price as the issue price (offer price) of the

primary offering.

(4)

Total selling price:

To be determined

(5)

Offering method:

Upon the primary offering, taking the demand

conditions and other factors of the primary offering into account, Daiwa Securities Co. Ltd. will conduct,

separate from the primary offering, a secondary

offering of DHI investment units that it is to borrow from DHI unitholder Daiwa House Industry Co.,

Ltd. with 3,600 units set as the maximum number.

(6)

Subscription unit:

1 unit or more in multiples of 1 unit

(7)

Subscription period:

The subscription period is to the same as the

subscription period of the primary offering.

(8)

Transfer date:

The transfer date shall be the same as the transfer

date of the primary offering.

(9)

When the primary offering is suspended, the secondary offering through over-allotment is also suspended.

(10)

The number of investment units to be sold, selling price and other matters necessary for this secondary

offering of investment units shall be determined at a future meeting of the board of directors.

(11)

Each of the items above is subject to the condition that the securities registration document filed in

accordance with the Financial Instruments and Exchange Act takes effect.

This document is a press release to make a public announcement of the issuance of new investment units and secondary offering of investment units of Daiwa House Residential Investment Corporation, and has not been prepared as a solicitation for investment. DHI cautions investors to ensure that they refer to the prospectus for notification of the issuance of new investment units and secondary offering of investment units as well as amendments thereto prepared by DHI (if such have been prepared) before undertaking investments and investments be made at their own discretion and responsibility.

This English language notice is a translation of the Japanese language notice issued on the same day and was prepared solely for the convenie nce of, and reference by, overseas investors. DHI makes no warranties as to its accuracy or completeness.

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3. Issuance of New Investment Units by Way of Third-Party Allotment
(Please refer to 1. below.)

(1)

Number of investment units to be offered:

3,600 units

(2)

Paid-in amount (Issue value):

To be determined

The paid-in amount (issue value) is to be determined on the Pricing Date. Please note that the paid-in

amount (issue value) shall be the same as the paid-in

amount (issue value) of the primary offering.

(3)

Total paid-in amount (issue value):

To be determined

(4)

Allottee and

number of investment units to be allotted:

Daiwa Securities Co. Ltd.

3,600 units

(5)

Subscription unit:

1 unit or more in multiples of 1 unit

(6)

Subscription period (Subscription date):

April 21, 2015 (Tuesday)

(7)

Payment date:

April 22, 2015 (Wednesday)

(8)

If some or all of the investment units are not applied for by the end of the subscription period (subscription

date) set forth in (6) above, the issuance of those units not applied for shall be cancelled.

(9)

When the primary offering is suspended, the issuance of new investment units by way of third-party

allotment is also to be suspended.

(10)

The paid-in amount (issue value) and other matters necessary for this issuance of new investment units

shall be determined at a future meeting of the board of directors.

(11)

Each of the items above is subject to the condition that the securities registration document filed in

accordance with the Financial Instruments and Exchange Act takes effect.


1. Secondary Offering through Over-Allotment, etc.
There may be cases where, upon the primary offering, taking the demand conditions and other factors of the primary offering into account, Daiwa Securities Co. Ltd. will conduct, separate from the primary offering, a secondary offering (secondary offering through over-allotment) of DHI investment units that it is to borrow from DHI unitholder Daiwa House Industry Co., Ltd. with 3,600 units set as the maximum number (the "borrowed DHI investment units"). The number of investment units to be sold through the secondary offering through over-allotment is planned to be 3,600 units, where said number of investment units to be sold indicates the maximum number of investment units to be sold. There may be cases where the number is reduced in light of demand conditions and other factors, or there may be cases where the secondary offering through over-allotment itself does not take place at all.
In relation to this, DHI passed a resolution at a meeting of the board of directors held on March 9, 2015 (Monday) to conduct, separate from the primary offering, an issuance of new investment units by way of third-party allotment of 3,600 DHI investment units with Daiwa Securities Co. Ltd. as the allottee (the "third-party allotment"), setting April 22, 2015 (Wednesday) as the payment date, for the purpose of Daiwa Securities Co. Ltd. acquiring the DHI investment units it requires to return the borrowed DHI investment units.

There may be cases where Daiwa Securities Co. Ltd. will conduct stabilizing transactions in conjunction with the primary offering and secondary offering through over-allotment. All or part of the DHI investment units acquired through said stabilizing transactions may be allocated to returning the This document is a press release to make a public announcement of the issuance of new investment units and secondary offering of investment units of Daiwa House Residential Investment Corporation, and has not been prepared as a solicitation for investment. DHI cautions investors to ensure that they refer to the prospectus for notification of the issuance of new investment units and secondary offering of investment units as well as amendments thereto prepared by DHI (if such have been prepared) before undertaking investments and investments be made at their own discretion and responsibility.

This English language notice is a translation of the Japanese language notice issued on the same day and was prepared solely for the convenie nce of, and reference by, overseas investors. DHI makes no warranties as to its accuracy or completeness.

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borrowed DHI investment units.
In addition, theremay be cases during the period from the day following the date on which the subscription period for the primary offering and secondary offering through over-allotment ends to April 17, 2015 (Friday) (the "syndicate covering transaction period") where Daiwa Securities Co. Ltd. will purchase DHI investment units on the Tokyo Stock Exchange, Inc. up to the number of investment units of the secondary offering through over-allotment (the "syndicate covering transactions") for the purpose of returning the borrowed DHI investment units. The DHI investment units that Daiwa Securities Co. Ltd. acquires in the syndicate covering transactions will all be allocated to returning the borrowed DHI investment units. Please note that there may be cases during the syndicate covering transaction period where, at the discretion of Daiwa Securities Co. Ltd., no syndicate covering transaction is conducted at all, or syndicate covering transactions are terminated before the number of investment units purchased reach the number of investment units of the secondary offering through over-allotment.
Daiwa Securities Co. Ltd. plans to subscribe to DHI investment units through the third-party allotment for the number of investment units arrived at when the number of investment units acquired through stabilizing transactions and syndicate covering transactions that are to be allocated to returning borrowed DHI investment units is subtracted from the number of investments units of the secondary offering through over-allotment. Accordingly, there may be cases where all or part of the investment units to be issued by way of the third-party allotment may not be subscribed for, which may result in a decrease in the number of investment units planned to be issued by way of the third-party allotment, or the cancellation of the entire issuance due to forfeiture.
The transactions described above are to be conducted by Daiwa Securities Co. Ltd. upon consultation with Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. and Nomura Securities Co., Ltd.
2. Changes in Total Number of Investment Units Issued After the Issuance of New Investment Units

Total number of outstanding investment units

747,740 units

(Note 1)

Number of investment units to be issued by issuance of new investment units through

primary offering

36,000 units

Total number of outstanding investment units after issuance of new investment units

through primary offering

783,740 units

Number of investment units to be issued by issuance of new investment units by way of

the third-party allotment

3,600 units

(Note 2)

Total number of outstanding investment units issued after issuance of new investment

units by way of the third-party allotment

787,340 units

(Note 2)

(Note 1) DHI implemented a 2-for-1 split of investment units ("Split") with March 1, 2015 as the effective date.

(Note 2) The number of investment units are based on the assumption that the new investment units to be issued by way of third-party allotment are all applied for by Daiwa Securities Co. Ltd.

This document is a press release to make a public announcement of the issuance of new investment units and secondary offering of investment units of Daiwa House Residential Investment Corporation, and has not been prepared as a solicitation for investment. DHI cautions investors to ensure that they refer to the prospectus for notification of the issuance of new investment units and secondary offering of investment units as well as amendments thereto prepared by DHI (if such have been prepared) before undertaking investments and investments be made at their own discretion and responsibility.

This English language notice is a translation of the Japanese language notice issued on the same day and was prepared solely for the convenie nce of, and reference by, overseas investors. DHI makes no warranties as to its accuracy or completeness.

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3. Purpose and Reason for Issuance
Considerations made - while paying heed to market trends, DHI's LTV (ratio of interest-bearing liabilities to total assets) levels and cash distribution levels, and other factors - led to the decision to issue new investment units for the purpose of expanding asset size, enhancing portfolio profitability and quality through new acquisition of specified assets (Note).

(Note) For specified assets, please refer to the press release " Notice Concerning the Proposed Acquisition and Leasing of Domestic Assets (Pacific Royal Court Minatomirai Urban Tower and Four other Properties)" announced today. The same shall apply hereafter.

4. Total Amount to be Procured, Use of Funds and Scheduled Outlay Period
(1) Total Amount to be Procured (approximate net balance)
10,062,360,000 yen (maximum)

(Note) The sum total amount of 9,147,600,000 yen in proceeds from the primary offering and 914,760,000 yen in maximum proceeds from the issuance of new investment units by way of the third-party allotment is shown. In addition, the amount above is the estimated amount calculated based on the closing price in regular trading of DHI investment units on the Tokyo Stock Exchange, Inc. as of February 27, 2015 (Friday).

(2) Specific Use of Funds and ScheduledOutlay Period

Specific use of funds

Scheduled expenditure period

a

The 9,147,600,000 yen in proceeds from the primary offering will be

used to fund part of new acquisition including expenses related to acquisition of specified assets. If there are any funds remaining, the

funds, combined with b, will be used as cash reserves to fund part of

future acquisition of specified assets or fund part of other repayment of loans.

April 1, 2015

to fund part of new acquisition including expenses related to

acquisition of specified assets.

Same as b for any funds remaining.

b

The 914,760,000 yen in maximum proceeds from the issuance of

new investment units by way of third-party allotment for which resolution was passed on the same date as the primary offering will be used as cash reserves to fund part of future acquisition of specified

assets or fund part of other repayment of loans.

By last day of December 2015

(Note) The funds to be procured are scheduled to be deposited with financial institutions until the expenditure.

5. Designation of Distributee
Of the DHI investment units subject to the primary offering, the Underwriters plan to sell 3,960 units to Daiwa House Industry Co., Ltd., which is the shareholder of the asset manager, that DHI has designated as the party to which sale shall be made.
6. Future Prospects
Please refer to the press release "Notice Concerning Revision of Operation Status Forecasts for the
19th Fiscal Period and Operation Status Forecasts for the 20th Fiscal Period" dated today.

This document is a press release to make a public announcement of the issuance of new investment units and secondary offering of investment units of Daiwa House Residential Investment Corporation, and has not been prepared as a solicitation for investment. DHI cautions investors to ensure that they refer to the prospectus for notification of the issuance of new investment units and secondary offering of investment units as well as amendments thereto prepared by DHI (if such have been prepared) before undertaking investments and investments be made at their own discretion and responsibility.

This English language notice is a translation of the Japanese language notice issued on the same day and was prepared solely for the convenie nce of, and reference by, overseas investors. DHI makes no warranties as to its accuracy or completeness.

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7. Performance in the Most Recent Three Fiscal Periods and Equity Finance Status
(1) Performance in the Most Recent Three Fiscal Periods

15th Fiscal Period

(fiscal period ended in August 2013)

16th Fiscal Period

(fiscal period

ended in February 2014)

17th Fiscal Period

(fiscal period ended in August 2014)

Net income per unit

(Note 1) (Note 2)

3,987 yen

[7,973 yen]

3,687 yen

[7,373 yen]

4,121 yen

[8,241 yen]

Distribution per unit (Note 1)

4,150 yen

[8,300 yen]

4,344 yen

[8,688 yen]

4,343 yen

[8,686 yen]

Actual payout ratio (Note 3)

104.1%

117.8%

105.4%

Net assets per unit (Note 1)

146,939 yen

[293,878 yen]

149,503 yen

[299,006 yen]

149,280 yen

[298,560 yen]

(Note 1) Factoring in the impact of the Split, the respective fiscal period's net income per unit, distribution per unit and net

assets per unit are divided by 2, rounded to the nearest whole number.

(Note 2) Net income per unit is calculated by dividing net income by the weighted average number of investment units in the period (15th

Fiscal Period: 348,567 units; 16th Fiscal Period: 366,698 units; 17th Fiscal Period: 373,870 units). (Note 3) Actual payout ratio is rounded to one decimal place.

(2) Status of Recent Investment Unit Price

Status Over Most Recent Three Fiscal Periods

15th Fiscal Period

(fiscal period ended in August 2013)

16th Fiscal Period

(fiscal period

ended in February 2014)

17th Fiscal Period

(fiscal period ended in August 2014)

Opening price

192,750 yen [385,500 yen]

179,500 yen [359,000 yen]

207,750 yen [415,500 yen]

Highest price

231,250 yen [462,500 yen]

215,250 yen [430,500 yen]

247,500 yen [495,000 yen]

Lowest price

174,500 yen [349,000 yen]

177,750 yen [355,500 yen]

198,750 yen [397,500 yen]

Closing price

181,250 yen [362,500 yen]

209,000 yen [418,000 yen]

240,000 yen [480,000 yen]

(Note) Factoring in the impact of the Split, the respective item's investment unit price have been divided by 2, rounded down to the nearest unit.

Status Over Most Recent Six Months

October, 2014

November

December

Opening price

231,500 yen [463,000 yen]

247,500 yen [495,000 yen]

272,000 yen [544,000 yen]

Highest price

238,250 yen [476,500 yen]

273,000 yen [546,000 yen]

293,000 yen [586,000 yen]

Lowest price

225,500 yen [451,000 yen]

232,500 yen [465,000 yen]

271,500 yen [543,000 yen]

Closing price

235,000 yen [470,000 yen]

270,500 yen [541,000 yen]

290,000 yen [580,000 yen]

January, 2015

February (Note 2)

March (Note 3)

Opening price

290,500 yen [581,000 yen]

281,000 yen [562,000 yen]

268,200 yen

274,000 yen

Highest price

304,000 yen [608,000 yen]

281,000 yen [562,000 yen]

275,700yen

275,000 yen

Lowest price

271,500 yen [543,000 yen]

263,500 yen [527,000 yen]

267,200 yen

263,000 yen

Closing price

276,500 yen [553,000 yen]

276,000 yen [552,000 yen]

269,500 yen

266,300 yen

(Note 1) Factoring in the impact of the Split, Investment Unit Price have been divided by 2, rounded down to the nearest unit. However, the respective items under March 2015 show only the respective item's investment unit price.

(Note 2) Figures marked with under February 2015 show the ex-rights investment unit price as a result of the Split.

(Note 3) Investment unit price for March 2015 is that as of March 6, 2015.

This document is a press release to make a public announcement of the issuance of new investment units and secondary offering of investment units of Daiwa House Residential Investment Corporation, and has not been prepared as a solicitation for investment. DHI cautions investors to ensure that they refer to the prospectus for notification of the issuance of new investment units and secondary offering of investment units as well as amendments thereto prepared by DHI (if such have been prepared) before undertaking investments and investments be made at their own discretion and responsibility.

This English language notice is a translation of the Japanese language notice issued on the same day and was prepared solely for the convenie nce of, and reference by, overseas investors. DHI makes no warranties as to its accuracy or completeness.

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Investment Unit Price on Business Day Preceding Issuance Resolution Date

March 6, 2015

Opening price

270,000 yen

Highest price

270,000 yen

Lowest price

265,700 yen

Closing price

266,300 yen

(3) Equity Finance Status Over Most Recent Three Business Periods

Capital Increase through Public Offering

Issue date

March 18, 2013

Amount of procured funds

10,455,984,000 yen

Paid-in amount (Issue value)

373,428 yen

Total number of investment units issued

and outstanding upon offering

321,070 units

Number of investment units issued

through the public offering

28,000 units

Number of investment units issued

and outstanding after the public offering

349,070 units

Initial use of procured funds at the time of issuance

Entire amount will be used to fund acquisition of specified assets and

repayment of the loan accompanying the acquisition of specified assets and, if there are any funds remaining, the funds will be used as cash reserves to fund part of acquisition of specified assets or fund part of repayment of loans in the future.

Schedule of expenditure at the time of

issuance

After March, 2013

Status of expenditure to date

Entire amount already used in scheduled outlay period above. Remaining funds

will be used to fund part of acquisition of specified assets announced on "Notice Concerning the Proposed Acquisition of Trust Beneficiary Rights in Real Estate" dated June 21, 2013.

Capital Increase by Way of Third-Party Allotment

Issue date

April 17, 2013

Amount of procured funds

1,045,598,400 yen

Paid-in amount (Issue value)

373,428 yen

Total number of investment units issued

and outstanding upon offering

349,070 units

Number of investment units issued

through the third-party allotment

2,800 units

Number of investment units issued

and outstanding after the third-party allotment

351,870 units

Allottee

Daiwa Securities Co. Ltd.

Initial use of procured funds at the time of issuance

Entire amount will be used to fund acquisition of specified assets and

repayment of the loan accompanying the acquisition of specified assets and, if there are any funds remaining, the funds will be used as cash reserves to fund

part of acquisition of specified assets or fund part of repayment of loans in the

future

This document is a press release to make a public announcement of the issuance of new investment units and secondary offering of investment units of Daiwa House Residential Investment Corporation, and has not been prepared as a solicitation for investment. DHI cautions investors to ensure that they refer to the prospectus for notification of the issuance of new investment units and secondary offering of investment units as well as amendments thereto prepared by DHI (if such have been prepared) before undertaking investments and investments be made at their own discretion and responsibility.

This English language notice is a translation of the Japanese language notice issued on the same day and was prepared solely for the convenie nce of, and reference by, overseas investors. DHI makes no warranties as to its accuracy or completeness.

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Schedule of expenditure at the time of

issuance

After April, 2013

Status of expenditure to date

Entire amount already used in scheduled outlay period above. Remaining funds

will be used to fund part of acquisition of specified assets announced on

"Notice Concerning the Proposed Acquisition of Trust Beneficiary Rights in

Real Estate" dated June 21, 2013.

Capital Increase through Public Offering

Issue date

October 28, 2013

Amount of procured funds

7,817,460,000 yen

Paid-in amount (Issue value)

390,873 yen

Total number of investment units issued

and outstanding upon offering

351,870 units

Number of investment units issued

through the public offering

20,000 units

Number of investment units issued

and outstanding after the public offering

371,870 units

Initial use of procured funds at the time of issuance

Entire amount will be used to fund repayment of the loan accompanying the

acquisition of specified assets and, if there are any funds remaining, the funds will be used as cash reserves to fund part of acquisition of specified assets or fund part of repayment of loans in the future.

Schedule of expenditure at the time of

issuance

After November, 2013

Status of expenditure to date

Entire amount already used in scheduled outlay period above. Remaining funds

will be used to fund part of acquisition of specified assets announced on "Notice Concerning the Proposed Acquisition of Trust Beneficiary Rights in Real Estate" dated March 20, 2014.

Capital Increase by Way of Third-Party Allotment

Issue date

November 19, 2013

Amount of procured funds

781,746,000 yen

Paid-in amount (Issue value)

390,873 yen

Total number of investment units issued

and outstanding upon offering

371,870 units

Number of investment units issued

through the third-party allotment

2,000 units

Number of investment units issued

and outstanding after the third-party allotment

373,870 units

Allottee

Daiwa Securities Co. Ltd.

Initial use of procured funds at the time of issuance

Entire amount will be used to fund repayment of the loan accompanying the

acquisition of specified assets and, if there are any funds remaining, the funds will be used as cash reserves to fund part of acquisition of specified assets or

fund part of repayment of loans in the future

Schedule of expenditure at the time of

issuance

After November, 2013

Status of expenditure to date

Entire amount already used in scheduled outlay period above. Remaining funds

will be used to fund part of acquisition of specified assets announced on "Notice Concerning the Proposed Acquisition of Trust Beneficiary Rights in Real Estate" dated March 20, 2014.

This document is a press release to make a public announcement of the issuance of new investment units and secondary offering of investment units of Daiwa House Residential Investment Corporation, and has not been prepared as a solicitation for investment. DHI cautions investors to ensure that they refer to the prospectus for notification of the issuance of new investment units and secondary offering of investment units as well as amendments thereto prepared by DHI (if such have been prepared) before undertaking investments and investments be made at their own discretion and responsibility.

This English language notice is a translation of the Japanese language notice issued on the same day and was prepared solely for the convenie nce of, and reference by, overseas investors. DHI makes no warranties as to its accuracy or completeness.

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8. Other (Restrictions on Sale, Additional Issuance, etc.)
(1) Daiwa House Industry Co., Ltd. is a unitholder of DHI investment units holding 75,440 units as of today. Plans are to have Daiwa House Industry Co., Ltd. reach an agreement with the Joint Lead Managers in relation to the primary offering to not engage in a sale, etc. of the DHI investment units it holds as of today and the 3,960 units of DHI investment units it is scheduled to acquire in the primary offering as stated in 5. above (provided, however, that such restriction shall not apply to the lending, etc. of DHI investment units to Daiwa Securities Co. Ltd. in conjunction with the secondary offering through over-allotment) for the period starting on the Pricing Date and ending on the date that marks 180 days from the payment date of the primary offering without prior written consent of the Joint Lead Managers.
Please note that the Joint Lead Managers are expected to have the authority to waive all or part of the restriction above at its discretion.
(2) DHI reached an agreement with the Joint Lead Managers in relation to the primary offering to not engage in an additional issuance, etc. of DHI investment units (provided, however, that such restriction shall not apply to the issuance of new investment units through the primary offering, the third-party allotment and the issuance, etc. of new investment units accompanying the split of DHI investment units) for the period starting on the Pricing Date and ending on the date that marks 90 days from the transfer date of the primary offering without prior written consent of the Joint Lead Managers.
Please note that the Joint Lead Managers have the authority to waive all or part of the restrictions above at its discretion.

* This press release (original Japanese version) is to be distributed to the Kabuto Club (the press club of the Tokyo Stock Exchange); the Ministry of Land, Infrastructure, Transport and Tourism Press Club; and the Ministry of Land, Infrastructure, Transport and Tourism Press Club for Construction Publications.

* URL of the DHI's website: http://daiwahouse-resi-reit.co.jp/eng/

This document is a press release to make a public announcement of the issuance of new investment units and secondary offering of investment units of Daiwa House Residential Investment Corporation, and has not been prepared as a solicitation for investment. DHI cautions investors to ensure that they refer to the prospectus for notification of the issuance of new investment units and secondary offering of investment units as well as amendments thereto prepared by DHI (if such have been prepared) before undertaking investments and investments be made at their own discretion and responsibility.

This English language notice is a translation of the Japanese language notice issued on the same day and was prepared solely for the convenie nce of, and reference by, overseas investors. DHI makes no warranties as to its accuracy or completeness.

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