McDonald's Corp. is harvesting its real estate equity in international markets such as Hong Kong. Let's talk about where these millions show up on their income statement.
The following is provided and written by Grok (the AI service by Elon Musk's X).
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McDonald's Corp. has sold (and continues to sell) several of its retail properties in Hong Kong as part of a broader asset disposal strategy.
Key Details
- Announcement (July 2025): McDonald's planned to sell eight prime retail properties (fully or partially tenanted by its restaurants) valued at around HK$1.2 billion (US$153 million). JLL was appointed as the sole agent for a public tender (closing September 16, 2025). Locations included Tsim Sha Tsui, Causeway Bay, Mong Kok, Kennedy Town, Tai Kok Tsui, Yuen Long, Tsuen Wan, and Tsz Wan Shan.
- McDonald's continues operating the restaurants as tenants under long-term leases, so operations are unaffected. Reports suggested it might divest more of its ~23 owned properties in phases.
Multiple individual sales have closed, often at strong profits:
- December 2025: A Kowloon property sold for HK$72.4 million (US$9.3 million) — part of the eight-property batch, with total proceeds from four sales reaching ~HK$333 million at that point.
- Yuen Long (three-storey property at Yuen Long Trade Centre): Sold for HK$77.4 million (US$9.9 million) to Acc Investment (originally bought in 1987 for ~US$1.2 million).
- Quarry Bay (Parkvale Place): Sold for HK$110 million to Uni Investment Development.
- Mei Foo Sun Chuen (Mount Sterling Mall): Sold for HK$93.5 million (US$11.9 million).
- Other sales have pushed cumulative proceeds higher (e.g., reports of seven shops disposed of by mid-2026).
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