AsianFin – U.S. fast food giant McDonald’s has announced plans to sell eight high-profile retail properties in Hong Kong via public tender, which is widely seen as the initial step of divesting its all properties in the city.   

The portfolio is estimated to be worth around HK$1.2 billion. Jones Lang LaSalle (JLL), appointed as the exclusive sales agent, confirmed the properties are located in some of the city’s busiest commercial areas and are all currently leased to McDonald’s under long-term agreements. The tender will close at noon on Tuesday, September 16, 2025.

A McDonald's global spokesperson told reporters that the company, headquartered in Chicago, regularly evaluates its real estate holdings and continuously optimizes its property portfolio. The company plans to sell several properties in Hong Kong, but restaurant operations will not be affected. "McDonald's remains committed to developing the Hong Kong market."

Currently, McDonald’s owns 23 retail properties in Hong Kong. Media reports indicate McDonald’s may ultimately look to exit all its property holdings in the city. Depending on the outcome of the first property auction, McDonald’s may continue selling other properties in 2026, with the ultimate goal of selling all of its commercial property assets in Hong Kong.

The properties up for sale range in size from 6,800 to 19,000 square feet and are located in major commercial districts including Tsim Sha Tsui, Causeway Bay, Mong Kok, Kennedy Town, Tai Kok Tsui, Yuen Long, Tsuen Wan, and Tsz Wan Shan. Each property is fully tenanted, with McDonald’s as the primary occupant. Some locations also house other tenants, such as 7-Eleven and pharmacies, providing diversified rental income for investors.

Eunice Tang, the Executive Director of Capital Markets at JLL, described the portfolio as a rare investment opportunity, emphasizing the strong and stable cash flow supported by McDonald’s long-term leases. She noted that several of the restaurants have been in operation for over 30 years, with some open 24 hours a day. Tang also reaffirmed McDonald’s long-term commitment to continue operating in these locations, bolstering their appeal as reliable investment assets.

Among the properties for sale is a 15,000-square-foot site at the Avenue of Stars in Tsim Sha Tsui, valued at approximately HK$460 million. Another notable listing is an 8,200-square-foot unit on Yee Wo Street in Causeway Bay, spanning the ground and second floors. The Tsim Sha Tsui site had previously been listed in 2019 with a market valuation of HK$1 billion and reportedly attracted a HK$900 million offer from the Tang Shing-bor family, though the transaction was never finalized. Also included in the portfolio is a 12,200-square-foot property on Market Street in Tsuen Wan.

This sale follows a series of previous divestments by McDonald’s in Hong Kong. Between 2020 and 2021, the company sold three properties: a Quarry Bay location in June 2021 for HK$260 million, earning a HK$110 million gain over its original purchase 32 years earlier; a site on Fuk Wa Street, Sham Shui Po, which sold for HK$22.68 million in August 2021—representing a 60% appreciation over 34 years; and a Tuen Mun property sold in October 2020 for HK$41 million.

Public information shows that McDonald's operates franchised restaurants under three models: traditional franchising, developmental licensing, and affiliates. The affiliate model is mainly used in a few overseas markets, particularly China and Japan.

According to financial reports, by the end of 2024, McDonald’s had a total of 43,477 restaurants worldwide. In 2024, the company achieved revenue of $25.92 billion, including $15.715 billion from franchised restaurants, $10.017 billion in rental income, and $5.606 billion from franchise fees. This means rental income accounted for nearly 38.65% of McDonald’s total revenue.

According to McDonald’s Hong Kong official website, the company officially entered the Hong Kong market in January 1975, opening its first outlet on Paterson Street in Causeway Bay. As this year marks the 50th anniversary of McDonald's entry into the Hong Kong market, there are 256 McDonald's outlets in Hong Kong, employing about 15,000 people.