Key facts
- McDonald's sold its first New Territories restaurant in Hong Kong for HK$120 million (US$15.3 million).
- The property at 10-22 Tsuen Wan Market Street was sold to Keen Charm Holdings (HK) Limited.
- The sale agreement was signed on August 31.
- The property spans the ground floor to the second floor and covers 12,251 square feet.
- McDonald's acquired the location in 1987 for HK$8 million.
McDonald's has sold the property housing its first New Territories restaurant in Hong Kong for HK$120 million (US$15.3 million), continuing its year-long strategy of divesting self-owned shops. The sale, agreed upon on August 31, saw the property at 10-22 Tsuen Wan Market Street acquired by Keen Charm Holdings (HK) Limited.
The 12,251-square-foot property, which includes the ground floor up to the second floor, was originally purchased by McDonald's in 1987 for HK$8 million. Over the 39 years of ownership, the property's value has reportedly increased 14-fold, with the price per square foot nearing HK$10,000.
This transaction aligns with McDonald's broader real estate management strategy, aiming to capitalize on long-term investments and potentially reallocate funds towards core business operations. The sale also occurs as "long-dormant old money" reportedly re-enters Hong Kong's retail property market.