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McDonald's has put eight high-street retail properties in Hong Kong up for sale for about HKD 1.2 billion (USD 153 million), while continuing to operate from these locations under long-term lease agreements. The sale, managed by JLL, includes sites in key shopping districts like Causeway Bay, Tsim Sha Tsui, and Mong Kok. The company plans to sell a total of 23 properties in phases. Investor interest has already been high. The move aligns with McDonald's broader portfolio strategy and comes amid a retail slowdown in the city.
McDonald's has initiated the sale of eight of its retail assets in Hong Kong through a public tender process managed by JLL. The total value of these properties is estimated to be around HKD 1.2 billion (USD 153 million). These spaces are located in top retail hubs, including Mong Kok, Tsim Sha Tsui, and Causeway Bay. The properties are being offered under a sale-and-leaseback model, where McDonald's will continue operating its outlets at the same sites under long-term rental agreements. Advertisement
Apart from McDonald's restaurants, some of these properties are also leased to other tenants such as 7-Eleven stores and local pharmacies, offering buyers a mix of income-generating assets in high-footfall zones. According to JLL, this is a rare opportunity to acquire street-level commercial real estate in prime locations with stable rental yields and committed tenants. The tender will remain open until mid-September.
A McDonald's representative confirmed that this asset sale is part of the company's ongoing real estate review and is in line with its long-term investment strategy. The company also clarified that it remains fully committed to its operations in Hong Kong. The sale is purely a monetisation step and will not affect the brand's presence or service delivery in the region.
Local media reports suggest that McDonald's is planning to divest a total of 23 retail properties in phases, with a cumulative expected value of around HKD 3 billion (USD 382 million). These properties include a mix of company-owned and previously acquired sites, many of which have remained under McDonald's ownership even after it sold its master franchise rights in mainland China and Hong Kong to a consortium led by CITIC and Carlyle in 2017.
Hong Kong's retail landscape has undergone major shifts in recent years, with street-level commercial rents in some areas falling back to early 2000s levels. This has made holding such properties less lucrative and pushed many owners to explore leaseback models or outright sales. JLL said that the McDonald's portfolio has already attracted strong interest from institutional investors, given its stable tenancy and location advantage.
McDonald's currently operates over 250 outlets in Hong Kong. Most are on leased properties, with only a limited number being company-owned. The current sale is focused on liquidating capital from owned real estate without disrupting store-level operations. All eight properties listed in this round of sale will remain operational as McDonald's outlets even after change of ownership.
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