McDonald's Strategic Property Sale in Hong Kong

In a significant move, McDonald's has decided to sell eight of its prime retail spaces in Hong Kong, valued at a staggering $153 million. Despite the sale, the fast-food giant assures that the outlets in these locations will continue their operations seamlessly.

The logo of McDonald's is seen at its restaurant in Hong Kong, Aug. 27, 2021. Photo by Reuters

Commitment to Hong Kong Market Remains Strong

McDonald's Corp has emphasized its ongoing commitment to the Hong Kong market, stating that the sale is part of a routine review of its property portfolio. The company operates around 256 restaurants in Hong Kong, many of which are in rented spaces.

Public Tender and Investor Interest

The properties are being offered through a public tender ending on Sept. 16, with significant interest already shown by a wide range of potential investors. Each property comes with long-term McDonald's leases and can be purchased individually or as part of a portfolio.

This sale comes at a time when Hong Kong's retail sector faces challenges, with prime street rents falling back to 2003 levels due to changing consumer habits and a wave of store closures.