TRADING house Li & Fung is to pay $320 million for a property next to its office in Cheung Sha Wan Road, Kowloon, to expand its office and storage space. The exporter of consumer goods announced yesterday it had agreed to buy from an independent party a property with a gross floor area of 103,740 sq ft. The cost per square foot is $3,085. Leighton Textiles Co - which Li & Fung said was an independent third party not connected with the company, shareholders or directors - holds the property. Kingfort, a wholly owned subsidiary of Li & Fung, will be used as the buying vehicle. Li & Fung will fund the acquisition through bank borrowings and internal resources. It said the consideration was determined at 'arms' length' and the directors consider that the terms and conditions are 'fair and reasonable'. A deposit of $32 million was paid when the deal was signed on September 22. The balance is payable on completion of the agreement, which will take place in November. Both parties are to enter a licence agreement. The buyer will grant a licence for the property to the seller for a period expiring in March next year at a monthly fee of $1 million. Chairman Victor Fung Kwok-king said yesterday: 'The group has grown so the existing office and warehouse space in Leighton Building is no longer sufficient to house all of the operation.' The company bought Leighton Building in June 1992, which was intended for the purpose of providing office and warehouse space for use by the company and its subsidiaries. 'The directors believe that the acquisition of the property will provide adequate accommodation space for the group's existing operational units and at the same time allow comfortable provision for the potential growth of the group in the coming years,' Mr Fung said. 'The directors of the company further envisage that the group's accommodation cost could be kept at an acceptable level in the long term as a result of relocating all operations.'