McDonald’s sold a property in Kowloon for HK$72.4 million (US$9.3 million), as the Chicago-based fast-food giant reached HK$333 million in proceeds at the halfway point in a campaign to dispose of eight Hong Kong retail properties.
A company called Mega Champ bought the property in the Tai Fong Building of Cosmopolitan Estate in Tai Kok Tsui in a transaction dated November 26, according to Land Registry records. The deal, which was registered on Friday, comprised two ground-floor shops as well as an office unit on the first floor.
McDonald’s paid HK$24.1 million for the property in 1989, according to the Land Registry, which means the sale yielded a 200 per cent gain and a profit of more than HK$48 million. McDonald’s declined to comment.
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In late July, the Chicago-based group said it planned to sell eight Hong Kong retail properties – valued at an estimated HK$1.2 billion – giving investors a rare opportunity to own fully tenanted assets amid a review of its local real estate portfolio. The list comprised properties in Tsim Sha Tsui, Causeway Bay, Mong Kok, Kennedy Town, Tai Kok Tsui, Yuen Long, Tsuen Wan and Tsz Wan Shan.
The corner property in Tai Kok Tsui measures 9,230 sq ft, according to information on the website of property consultancy JLL. Besides the fast-food chain, other tenants include a pharmacy and a fruit and vegetable vendor.
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It is “a prime location in a lively and densely populated area”, according to JLL. “Surrounded by industrial buildings, located opposite a service apartment, and with a vibrant mix of restaurants nearby, this property enjoys constant foot traffic and offers businesses exceptional exposure in a dynamic commercial and residential environment.”