McDonald’s to sell eight prime retail properties in Hong Kong valued at US$152.89M

HONG KONG – McDonald’s Corp has announced plans to sell eight prime retail properties in Hong Kong, collectively valued at around HK$1.2 billion (US$152.89 million), according to JLL, the appointed sole agent for the sale.

This strategic move is part of McDonald’s ongoing review to optimise its property portfolio amid changing market conditions.

The properties, located in high-traffic and sought-after areas such as Tsim Sha Tsui, Causeway Bay, Mong Kok, Kennedy Town, Tai Kok Tsui, Yuen Long, Tsuen Wan, and Tsz Wan Shan, are being offered through a public tender process ending on September 16, 2025.

Potential investors can buy the properties individually or as a portfolio, providing flexible acquisition options.

Despite the sale, McDonald’s outlets at these sites will continue to operate uninterrupted under long-term lease agreements, as confirmed by Eunice Tang, JLL’s executive director of capital markets.

The fast-food giant will remain a tenant, ensuring stable tenancy and continued business operations at these locations.

This sale is the first phase of a broader plan for McDonald’s to gradually divest all 23 of its retail spaces in Hong Kong, estimated to be worth nearly HK$3 billion (US$127.4 million).

The company operates around 256 restaurants in Hong Kong, many of which are already in leased spaces.

The move aligns with market realities, as Hong Kong’s retail rents have fallen to levels not seen since 2003, driven by shifts in consumer habits that have caused widespread store closures.

McDonald’s aims to capitalise on this shift by unlocking capital tied in real estate while preserving its operational presence.

McDonald’s sold an 80% stake in its mainland China and Hong Kong businesses in 2017 to a consortium led by CITIC Group and Carlyle Group but retained ownership of its real estate assets.

This current sale highlights the company’s continued efforts to optimise its asset base strategically.

JLL has reported strong investor interest in the retail properties, citing their premium locations, high occupancy rates, and stable income streams backed by McDonald’s long-term leases.

The sale offers a rare chance to acquire resilient retail assets in one of Asia’s most prominent markets.

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