US fast-food restaurant chain Mcdonald’s Corp. will sell eight high-end retail properties in Hong Kong with a total market value of about HK$1.2 billion ($153 million).
JLL, the company appointed as sole selling agent, said on Monday Mcdonald’s outlets at these locations will continue to operate. Mcdonald’s will become a tenant of the spaces and their sale will not affect the company’s operations in the city, the Hong Kong Economic Times said.
The sale of the eight retail spaces is being conducted as an open tender, which will close on 16 September. JLL said a wide range of potential investors have already shown significant interest, given the properties’ favourable location and attractive yields. The properties can be purchased individually or all together.
In a separate statement, Mcdonald’s said it is continuously reviewing its property portfolio and that the properties in Hong Kong are for sale as part of an optimisation exercise.
Mcdonald’s operates about 260 restaurants in Hong Kong, many of which are located in leased premises.
Rents at Hong Kong’s high street shops fell 2.3 per cent in the first half of the year and are expected to fall 10 per cent in 2025, according to JLL.