Sunrise Real Estate Group, Inc. (SRRE)

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SRRE monster 8k just out; SRRE should trade in $dollar range

Item 1.01 Entry into a Material Definitive Agreement.

On December 26, 2015, Shanghai Shang Yang Real Estate Consultation Company Limited (“SHSY”) and Shanghai Daerwei Trading Company Limited (“Daerwei”) entered into certain asset purchase agreement (the “Asset Purchase Agreement”), pursuant to which SHSY sold approximately 1,619.30 square meters of office spaces in an office building located at No. 638, Hengfeng Road, Building A, Shanghai, PRC 200070 (the “Office Space”) to Daerwei (the “Asset Purchase”). The Asset Purchase is expected to close by March 31, 2016.

SHSY is a wholly-owned subsidiary of the Registrant. Daerwei is owned 58% by an entity that is majority-owned by the wife of the Chief Executive Officer of the Registrant, 19% by SHSY and 11% by LinyiRui Lin Construction and Design Company Limited, which is also a wholly-owned subsidiary of the Registrant.

The purchase price for the Office Space was RMB 51,820,480 (approximately USD $7,978,273.19 using the 12/31/2015 exchange rate of RMB 6.4951 per USD $1). This Office Space was initially purchased for RMB 42,476,600 (approximately USD $6,539,791.53 using the 12/31/2015 exchange rate of RMB 6.4951 per USD $1). Prior to the sale, SHSY obtained an independent appraisal which concluded that thevalue of the Office Space less than the ultimate sale price. On February 16, 2016, Daerwei and SHSY entered into a supplementary agreement to the Asset Purchase Agreement, pursuant to which Daerwei agreed to pay SHSY RMB 8,096,950 (approximately USD $1,236,037.82) as a reimbursement for fixtures previously installed in the Office Space.

https://www.sec.gov/Archives/edgar/data/1083490/000114420416085230/v433124_8k.htm