MILL RESIDENTIAL REIT PLC - Repayment of Related Party Loan

                                                                   7 April 2015

                           Mill Residential REIT plc

                                (the"Company")

                        Repayment of Related Party Loans

Mill Residential REIT plc (AIM: MRR), the UK's first mainstream, buy-to-let
REIT specialising in residential property investment, announces that it has
reached agreement with Mill Group Limited for the early repayment of certain
loans in consideration for the waiver of 50 per cent. of the interest payable
on those loans. The two loans will be repaid out of the Company's existing cash
resources. The Company intends to replace these loans with bank debt in due
course at a cheaper interest rate.

Full details of these loans aggregating to approximately £1.5 million are set
out in paragraph 10.10 of Part VIII: Additional Information of the Company's
admission document dated 17 December 2014.

The Company has agreed with Mill Group Limited to repay both the loans in
return for a 50 per cent. reduction in the interest rate payable since the
loans were drawn down, resulting in a saving of £18,631 during the 2015
calendar year and a further potential £100,000 over the three year life of the
second loan.

Due to the fact that Mill Group Limited is a subsidiary of Mill Group Holdings
Limited, an entity ultimately controlled by David Toplas' family trusts, and
Simon Phillips and Andrew Smith, and each are a substantial shareholder under
the AIM Rules, the alterations of the terms of the loans constitute related
party transactions as defined by the AIM Rules. The Independent Directors,
being Ian Ellis and Brian Norton, having consulted with Sanlam Securities UK
Limited, the Company's nominated adviser, consider that the alterations of the
terms of the loans are fair and reasonable insofar as Shareholders are
concerned.

Ian Ellis, Non-Executive Chairman, commented: "The cash and gearing position of
the Company is something which the Board continuously monitors. Paying interest
on borrowed money at six per cent. per annum only to leave the cash on deposit
account earning virtually no interest does not make financial sense. The first
loan of £840,000 was within a few weeks of its contracted repayment date and
that raised the question internally whether we needed the second loan of £
667,000 to remain in place and whether Mill Group would accept an early
repayment of this loan as well and forego earning six per cent. per annum on
it. We are pleased that a full early repayment has been agreed and interest
chargeable to date has been halved. Mill Group Limited has also indicated that
it will be supportive in the event that an appropriate acquisition target is
identified and as the current portfolio is unleveraged it offers the Company a
considerable amount of flexibility when targets are found."

For further information please contact:

Mill Residential REIT plc                            020 7930 8600
David Toplas/Simon Phillips

Sanlam Securities UK (Nominated Adviser and Joint    020 7628 2200
Broker)
Virginia Bull/Andrew Wagstaff/Max Bascombe

finnCap Limited (Joint Broker)                       020 7220 0500
Tom Jenkins

Positive Profile (Financial PR)                      07774 228845
Henry Gewanter

About Mill Group Residential

Mill Group Residential is an independent specialist residential investment
manager with a successful track record of more than 20 years. The group's focus
is on long-term income generation through targeted asset acquisition and active
management in the residential sector. The private rented sector is a key
strategic planned area of growth for the group.

Since 1994, Mill Group has demonstrated its expertise in conceiving, building
and operating social infrastructure and residential property funds. The team
has managed £2.5 billion of assets, including £1 billion of residential
property across a number of successful platforms.

What is a UK-REIT?

In brief, a UK real estate investment trust (REIT) is a company that owns, and
in most cases, manages income-producing real estate. Modelled after mutual
funds, REITs provide investors of all types stable income streams,
diversification and long-term capital appreciation. Rental income of the REIT
will, in most cases, be exempt from UK taxation. REITs are required to pay out
90 per cent. of their calculated net exempt income as a special type of
dividend (known as a property income distribution or PID) to shareholders. In
turn, shareholders will be subject to tax on those dividends (unless falling
within certain exemptions such as registered pension schemes or charities).

REITs allow anyone to invest in portfolios of properties the same way they
invest in other industries i.e. through the purchase of shares in the REIT. In
the same way shareholders benefit by owning shares in other corporations, the
shareholders of a REIT earn a share of the income produced through real estate
investment without actually having to go out and buy or finance property. PIDs
are therefore subject to taxation as if they are a separate property income
stream.

REITs also have the advantage of being exempt from corporation tax on most
property capital gains, which brings various benefits such as having a
competitive advantage on corporate acquisitions. This benefit can potentially
be shared with the vendor to increase their post-tax proceeds and reduce the
REITs purchase price.

In the UK, REITs own many types of commercial real estate, ranging from office
and apartment buildings to warehouses, hospitals, shopping centres and hotels.
Mill Residential REIT would be the first REIT focused solely on the mainstream,
UK residential property market.

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