Business / news
McDonald's Sells Nearly Half Its Hong Kong Shops in Slumping Market
McDonald's has sold 11 of its 23 self-owned Hong Kong restaurants for more than HK$900 million, a year after putting the portfolio on the market even as the city's retail property sector struggles.
The fast-food chain launched the disposal plan with real estate services firm JLL in July last year, initially valuing the entire portfolio of 23 shops at about HK$3 billion (US$382 million). Since then, it has completed 11 sales—five in the first year and six worth HK$607 million this year—according to market calculations.
The majority of the transactions involved the first batch of eight properties marketed through public tender by JLL. The sales highlight that even in a sluggish market, well-located, top-tier assets continue to attract buyers, analysts say.
Hong Kong's retail property market has been experiencing its weakest period in decades. Shop values remain more than 50 percent below their pre-pandemic peaks, and both veteran investors and major landlords have been offloading assets.
Trading volume is thin: only 379 shop transactions were completed in the first half of this year, little changed from the same period a year earlier, according to Centaline Commercial. McDonald's disposal drive shows that investors are being selective, favoring only prime properties.