McDonald’s sells Kennedy Town, Mong Kok shops for HK$180 million

McDonald’s sold two Hong Kong street-level shops in Kennedy Town and Mong Kok on the same day for a combined HK$180 million, both reportedly purchased by the same local investor.

Together with an earlier sale in Yuen Long, the US fast-food giant has now realized more than HK$261 million from three property disposals in recent months.

Property records show the Kennedy Town shop at 12 Smithfield Road, spanning about 6,826 square feet, changed hands for HK$100.5 million, translating to roughly HK$14,700 per sq ft. The buyer, Meridian Capital, is expected to achieve an estimated yield of 4.8 percent. McDonald’s bought the site in 1991 for HK$20 million, marking a fourfold gain over 34 years.

The Mong Kok outlet, located on Nathan Road, fetched HK$83.2 million. Covering about 7,367 sq ft, the property was acquired by Verity Partners. at an average price of HK$11,300 per sq ft, with a projected yield of 6.8 percent. McDonald’s continues to lease back the space for around HK$474,000 a month under a long-term tenancy.

The directors of these two buyers are reportedly the same individual.

McDonald’s plans to offload all 23 of its Hong Kong properties, valued at roughly HK$3 billion.