McDonald's to sell 8 Hong Kong retail spaces valued at $153 million, JLL says | Singapore Breaking News & Latest Updates

McDonald's to sell 8 Hong Kong retail spaces valued at $153 million, JLL says — Business The logo of McDonald's is seen at its restaurant in Hong Kong, China August 27, 2021. REUTERS/Tyrone Siu/File Photo HONG KONG :McDonald's Cor...

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The logo of McDonald's is seen at its restaurant in Hong Kong, China August 27, 2021. REUTERS/Tyrone Siu/File Photo

HONG KONG :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 ($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 remain operational, JLL executive director of capital markets Eunice Tang said in a statement.

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.

Subscribe to our Chief Editor’s Week in ReviewOur chief editor shares analysis and picks of the week's biggest news every Saturday.This service is not intended for persons residing in the E.U. By clicking subscribe, I agree to receive news updates and promotional material from Mediacorp and Mediacorp’s partners.LoadingMcDonald's Corp could not be immediately reached for comment.In 2017, Chicago-based McDonald's Corp sold an 80 per cent 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 September 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.($1 = 7.8490 Hong Kong dollars)

McDonald's Corp could not be immediately reached for comment.

In 2017, Chicago-based McDonald's Corp sold an 80 per cent 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 September 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.

($1 = 7.8490 Hong Kong dollars)

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