McDonald’s Corp is putting eight of its prime retail properties in Hong Kong (HK) on the market, with a combined estimated value of HK$1.2 billion, global real estate services firm JLL announced on July 28.
Despite the sale, Reuters reported that McDonald’s will continue to operate in all eight locations as a tenant, JLL’s Executive Director of Capital Markets Eunice Tang confirmed, noting that investor interest has already been strong. The public tender for the properties will close on Sept 16.
Meanwhile, McDonald’s said the move is part of an ongoing review of its global property portfolio. The company emphasised it remains fully committed to the HK market, where it operates approximately 256 restaurants, the majority in leased spaces.
According to the Hong Kong Economic Times, the fast-food giant is planning to offload all 23 of its retail property holdings in the city, worth nearly HK$3 billion, in phases, while maintaining operations in the same premises under long-term leases.
The properties, which can be purchased individually or as a portfolio, offer stable rental returns secured by long-term McDonald’s leases, appealing to investors seeking reliable yield amid weak retail sentiment.
The sale comes as HK’s retail landscape continues to shift, with prime street rents in the first quarter falling back to 2003 levels, reflecting changing consumer behaviour and widespread store closures.
