McDonald’s Corp is planning to sell eight prime retail properties in Hong Kong with a total market value of around HK$1.2 billion (US$152.89 million), JLL, which has been appointed as the sole agent of the sale, said on Monday.
The McDonald’s outlets in the locations will continue to operate, JLL executive director of capital markets Eunice Tang said in a statement.
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The logo of McDonald’s is seen at its restaurant in Hong Kong, Aug. 27, 2021. Photo by Reuters |
In a separate statement, McDonald’s Corp said it continually reviewed its property portfolio and that the Hong Kong sites were available for sale as part of that assessment.
The fast-food company, which is headquartered in Chicago, said it remained fully committed to the Hong Kong market.
Hong Kong Economic Times reported earlier on Monday McDonald’s planned to sell all of its 23 retail spaces – valued at nearly HK$3 billion in total – in batches, but it would continue operating in existing locations as tenants, and the sale would not affect its operations in the city.
McDonald’s has around 256 restaurants in Hong Kong, the report said, many in rented spaces.
In 2017, McDonald’s Corp sold an 80% stake in its mainland Chinese and Hong Kong operations to a group that included CITIC Ltd, its investment arm CITIC Capital, and Carlyle Group for up to $2.1 billion. But the assets remain under McDonald’s Corp.
The sale of the eight retail properties is offered through a public tender that ends on Sept. 16. JLL said it had already received significant interest from a wide pool of potential investors.
All the properties are secured with long-term McDonald’s leases, and they are available for purchase either individually or as a portfolio, it added.
Overall prime street rents in the first quarter have fallen back to 2003 levels, as Hong Kong’s retailers battle shifting consumer habits that have led to a wave of store closures.
