McDonald’s has recently made a significant move in Hong Kong’s property market by announcing the sale of eight of its prime retail assets, collectively valued at approximately HK$1.2 billion (US$153 million). The properties are located in some of the most high-profile districts, including Tsim Sha Tsui, Causeway Bay, Mong Kok, Kennedy Town, Tai Kok Tsui, Yuen Long, Tsuen Wan, and Tsz Wan Shan. This is a rare sale, as McDonald’s has held these valuable sites for decades, reflecting the company’s deep roots in Hong Kong’s real estate landscape.

What’s notable is that McDonald’s will continue to operate its restaurants at these locations under long-term leases. This approach allows the company to unlock the capital invested in its real estate while maintaining its crucial retail footprint. Some of the properties also include other established tenants, such as 7-Eleven convenience stores and independent pharmacies, enhancing the appeal of the portfolio with diversified, stable income streams.

By adopting this sale-and-leaseback model, McDonald’s demonstrates a clever financial strategy to maximize asset value. Instead of holding onto the properties, which ties up substantial capital, the company can realize a significant cash inflow and redeploy these funds for business development, technology upgrades, or expansion opportunities. The sale also comes at a time when high-quality retail properties remain in demand among investors seeking resilient, income-generating assets anchored by tenants like McDonald’s, who have a track record of long leases and robust cash flow.

For investors, this is an exceptional opportunity to acquire fully leased, prime retail assets in Hong Kong with immediate stable rental returns. For McDonald’s, the move reflects operational flexibility and proactive asset management—ensuring that, even after letting go of ownership, they continue to benefit from these strategic locations while strengthening their balance sheet. This decision is a textbook case of how iconic brands can leverage real estate to support long-term growth and resilience.