Hui Xian Real Estate Investment Trust : DISTRIBUTION REINVESTMENT ARRANGEMENT IN RESPECT OF THE 2017 INTERIM DISTRIBUTION OF HUI XIAN REIT

If you are in any doubt as to any aspect of this circular or as to the action to be taken, you should consult your licensed securities dealer or registered institution licensed to deal in securities, bank manager, solicitor, professional accountant or other professional adviser.

If you have sold or transferred all your Units in Hui Xian REIT, you should at once hand this circular, together with the relevant Election Form, to the purchaser or transferee or to the bank, licensed securities dealer or other agent through whom the sale or transfer was effected for transmission to the purchaser or transferee.

The Securities and Futures Commission of Hong Kong, Hong Kong Exchanges and Clearing Limited, The Stock Exchange of Hong Kong Limited and Hong Kong Securities Clearing Company Limited take no responsibility for the contents of this circular, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this circular.

(a Hong Kong collective investment scheme authorised under section 104 of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong))

(Stock Code: 87001)

Managed by Hui Xian Asset Management Limited

Directors of the Manager:

Non-executive Directors

Mr. KAM Hing Lam (Chairman)

Mr. IP Tak Chuen, Edmond Mr. LIM Hwee Chiang

Mr. YIN Ke

Executive Directors

Mr. CHEUNG Ling Fung, Tom Mr. LEE Chi Kin, Casey

Independent Non-executive Directors Mr. CHENG Hoi Chuen, Vincent Professor LEE Chack Fan

Dr. CHOI Koon Shum, Jonathan

Registered Office of the Manager:

Unit 303, Cheung Kong Center 2 Queen's Road Central

Hong Kong

29 August 2017

To: Unitholders of Hui Xian REIT

Dear Sir/Madam,

On 28 July 2017, the board of directors (the "Board") of Hui Xian Asset Management Limited 滙賢房託管理有限公司 (the "Manager"), as manager of Hui Xian Real Estate Investment Trust ("Hui Xian REIT"), announced, among other things,

that the Board has approved a distribution reinvestment arrangement ("Distribution Reinvestment Arrangement") for the interim distribution for the period from 1 January 2017 to 30 June 2017 ("2017 Interim Distribution") of RMB0.1377 per unit of Hui Xian REIT ("Unit"). The Distribution Reinvestment Arrangement will be made available to holders of the Units (the "Unitholders") (including Unitholders with registered addresses outside Hong Kong ("Overseas Unitholders") who have complied with all applicable registration or other legal requirements, governmental or regulatory procedures or similar formalities of the relevant jurisdictions, other than those excluded as mentioned in paragraph 6 of the Appendix to this circular) whose names appeared on the register of Unitholders on 16 August 2017 (Wednesday) (the "Record Date") (the "Eligible Unitholders"). Under the Distribution Reinvestment Arrangement, Eligible Unitholders will be entitled to have a scrip distribution alternative in lieu of a cash distribution. Eligible Unitholders can elect to receive their 2017 Interim Distribution wholly in the form of cash, or wholly in the form of new Units, or a combination of both. The expected date for the payment of cash distribution and the despatch of new Unit certificates for Scrip Units is on or about 28 September 2017 (Thursday).

The register of Unitholders of Hui Xian REIT was closed from 14 August 2017 (Monday) to 16 August 2017 (Wednesday) (both days inclusive) (the "Book Closure Period"). The Record Date is the last day of the Book Closure Period which was on 16 August 2017 (Wednesday). In order to qualify for the 2017 Interim Distribution, all properly completed transfer forms in respect of transfer of Units (accompanied by the relevant Unit certificates) had to be lodged with Hui Xian REIT's unit registrar ("Unit Registrar") for registration not later than 4:30 p.m. on 11 August 2017 (Friday). Eligible Unitholders whose names appeared on the register of Unitholders on the Record Date may elect to receive:

1. only cash distribution of RMB0.1377 per Unit; or

2. only scrip distribution of new units of Hui Xian REIT (the "Scrip Units") at an issue price of RMB3.02 per Scrip Unit ("Issue Price"), subject to any fractional entitlement being disregarded as mentioned below; or

3. partly in cash distribution and partly in Scrip Units.

Further details of the Distribution Reinvestment Arrangement are set out in the Appendix to this circular.

Scrip Units to be issued to a Unitholder pursuant to an election to receive some or all of their 2017 Interim Distribution in Scrip Units may be allocated in odd lots (of fewer than a board lot of 1,000 Units). No special dealing arrangements will be put in place by Hui Xian REIT to facilitate the trading or disposal of Scrip Units issued in odd lots. Unitholders should be aware that odd lots usually trade at a discount to the price of board lots.

Whether or not it is to your advantage to elect to receive Scrip Units in lieu of cash will depend upon your own individual circumstances and the decision in this regard, and all effects resulting therefrom, must be solely the responsibility of each Unitholder. Hui Xian REIT does not accept any responsibility for your decision.

The scrip distribution alternative will enable you to increase your holding of Units without incurring dealing costs or stamp duty. To the extent that Eligible Unitholders elect to receive Scrip Units, Hui Xian REIT will benefit by retaining cash which would otherwise be payable by way of distribution.

If you are in any doubt as to any aspect of this circular or as to the action you should take, you should consult your licensed securities dealer or registered institution licensed to deal in securities, bank manager, solicitor, professional accountant or other independent professional adviser.

By Order of the Board

Hui Xian Asset Management Limited

滙賢房託管理有限公司

(as Manager of Hui Xian Real Estate Investment Trust) KAM Hing Lam

Chairman of the Manager

The purpose of this Appendix is to provide Unitholders with further details in respect of the Distribution Reinvestment Arrangement.

1. ISSUE PRICE

   The Issue Price represents the volume weighted average price for a Unit for all trades in the Units on The Stock Exchange of Hong Kong Limited (the "Stock Exchange") for the ten consecutive trading days starting from, and including, 10 August 2017 (Thursday), being the first day the Units were traded ex-2017 Interim Distribution, less a 2% discount.

2. WHO IS ELIGIBLE

   Subject to paragraph 6 below, Unitholders whose names appeared on the register of Unitholders on the Record Date (i.e. 16 August 2017 (Wednesday)) may participate in the Distribution Reinvestment Arrangement and will be entitled to elect to receive Scrip Units in respect of all or part of their holdings of Units (see paragraph 3 below) as an alternative to receiving a distribution of RMB0.1377 per Unit in cash in respect of the 2017 Interim Distribution.

   Hui Xian REIT's Units were quoted ex-2017 Interim Distribution on 10 August 2017 (Thursday). This means that if you bought the Units on or after that date, you are not entitled to receive the 2017 Interim Distribution.

   However, if you bought or sold Units in Hui Xian REIT before 10 August 2017 (Thursday), being the date on which the Units were quoted ex-2017 Interim Distribution, and this has not been reflected in the number of Units shown in Box B on your Election Form (as defined hereafter), you should, without delay, consult the licensed securities dealer or other agent through whom the sale or transfer was effected for advice on the action you should take.

3. BASIS OF ALLOTMENT

   Your entitlement to Scrip Units is based on:

4. the Issue Price (i.e. RMB3.02 per Scrip Unit);

5. 2017 Interim Distribution (i.e. RMB0.1377 per Unit); and

6. the number of Units held by you on the Record Date (i.e. 16 August 2017 (Wednesday)).