Why McDonald’s Hong Kong shops still attract buyers
SCMP · 1 SOURCESabout 2 hours ago2 MIN
Summary
McDonald’s has found buyers for nearly half of its self-owned Hong Kong shop portfolio about a year after launching the disposal, even as the city’s retail property market remains deeply depressed. The sales suggest investors are still willing to buy retail assets that offer strong locations, long leases and dependable income.
Key Points
- McDonald’s planned to sell all 23 self-owned Hong Kong shops in phases, with the full portfolio initially valued at about HK$3 billion, market sources said.
- Since appointing JLL in July last year, the chain has sold 11 properties for more than HK$900 million, including five last year and six worth HK$607 million this year.
- The completed deals included the first batch of eight properties that JLL marketed through public tender as part of the disposal programme.
- Analysts said the assets appealed because they were in prime locations, carried long leases and were backed by a blue-chip tenant offering stable income.
- Hong Kong’s shop values remain more than 50 per cent below pre-pandemic highs, while only 379 shop transactions were completed in the first half, according to Centaline Commercial.
Why It Matters
The McDonald’s disposals do not point to a broad rebound in Hong Kong retail property, but they show capital is still available for defensive assets with reliable cash flow. For local investors and landlords, the deals underline that quality and tenant strength now matter more than simple exposure to the retail sector.