Sunlight REIT (SEHK:435) entered into sale and purchase agreement to acquire Fung Shun Commercial Building from Chong Hing Bank Limited, Investment Arm for approximately HKD 660 million on September 26, 2017. Sunlight REIT will deposit HKD 65.8 million on signing of the agreement and will pay balance HKD 592.2 million on date of completion. Chong Hing Bank Limited will lease back Fung Shun Commercial Building. Sunlight REIT will use own cash resources and bank borrowing for the transaction. The Board of Sunlight REIT and Chong Hing Bank Limited (SEHK:1111) believe that the terms of the sale and purchase agreement are fair and reasonable. The transaction is expected to complete on or before December 15, 2017. Chong Hing Bank Limited will use the proceeds for funding the continued growth of the core banking business and the working capital needs. The acquisition is not expected to have any material adverse impact on the financial position of Sunlight REIT as compared to that at June 30, 2017. Henderson Sunlight Asset Management Limited is entitled to receive an acquisition fee not exceeding 1% of the appraised value of Fung Shun Commercial Building, and such fee will be payable within 14 days after completion. The Board has resolved to charge a rate of 0.5% in respect of the acquisition, which implies that the acquisition fee payable to the Henderson Sunlight Asset Management Limited would amount to HKD 3.29 million which would be paid in cash. HSBC Institutional Trust Services (Asia) Limited has agreed with the Henderson Sunlight Asset Management Limited that it will charge a one-time additional fee of up to HKD 0.15 million for duties undertaken in connection with the acquisition. Henderson Sunlight Asset Management Limited has engaged Vigers Building Consultancy Limited to conduct a building condition survey on Fung Shun Commercial Building. Sunlight REIT (SEHK:435) completed the acquisition of Fung Shun Commercial Building from Chong Hing Bank Limited, Investment Arm on December 15, 2017.