Latest news with #retailproperties
South China Morning Post
2 days ago
- Business
- South China Morning Post
McDonald's seeks US$153 million for 8 Hong Kong retail properties in rare asset sale
McDonald's Corp is selling eight retail properties in Hong Kong with an estimated market value of HK$1.2 billion (US$153 million), giving investors a rare opportunity to own fully tenanted assets, as the world's biggest fast-food chain reviews its real estate portfolio in the city. The Chicago-based group appointed JLL as the sole agent to find buyers for its assets in Tsim Sha Tsui, Causeway Bay, Mong Kok, Kennedy Town, Tai Kok Tsui, Yuen Long, Tsuen Wan and Tsz Wan Shan, according to a statement on Monday. The public tender closes on September 16, it added. McDonald's said it would continue to operate its restaurants in the eight locations on long-term leases. Some of the properties would be sold with additional tenancies involving 7-Eleven convenience stores and independent pharmacies, it added. 'This is an exceptional opportunity – one that has not occurred in decades – to acquire high-quality retail assets backed by resilient tenants like McDonald's, who have maintained long-lasting leases and strong cash flow,' said Eunice Tang, executive director of capital markets at JLL in Hong Kong. With a 100 per cent occupancy, the portfolio offers stable income, supported by a high rental yield, the agent said. McDonald's Star House outlet on Salisbury Road in Tsim Sha Tsui. Photo: Handout JLL has 'received significant interest from a wide pool of potential investors', Tang said.
CNA
2 days ago
- Business
- CNA
McDonald's to sell 8 Hong Kong retail spaces valued at $153 million, JLL says
HONG KONG :McDonald's Corp is planning to sell eight prime retail properties in Hong Kong with a total market value of around HK$1.2 billion ($152.89 million), JLL, which has been appointed as the sole agent of the sale, said on Monday. The McDonald's outlets in the locations will remain operational, JLL executive director of capital markets Eunice Tang said in a statement. Hong Kong Economic Times reported earlier on Monday McDonald's planned to sell all of its 23 retail spaces - valued at nearly HK$3 billion in total - in batches, but it would continue operating in existing locations as tenants, and the sale would not affect its operations in the city. McDonald's has around 256 restaurants in Hong Kong, the report said, many in rented spaces. McDonald's Corp could not be immediately reached for comment. In 2017, Chicago-based McDonald's Corp sold an 80 per cent stake in its mainland Chinese and Hong Kong operations to a group that included CITIC Ltd, its investment arm CITIC Capital, and Carlyle Group for up to $2.1 billion. But the assets remain under McDonald's Corp. The sale of the eight retail properties is offered through a public tender that ends on September 16. JLL said it had already received significant interest from a wide pool of potential investors. All the properties are secured with long-term McDonald's leases, and they are available for purchase either individually or as a portfolio, it added. Overall prime street rents in the first quarter have fallen back to 2003 levels, as Hong Kong's retailers battle shifting consumer habits that have led to a wave of store closures.
Reuters
2 days ago
- Business
- Reuters
McDonald's to sell 8 Hong Kong retail spaces valued at $153 million, JLL says
HONG KONG, July 28 (Reuters) - McDonald's Corp (MCD.N), opens new tab is planning to sell eight prime retail properties in Hong Kong with a total market value of around HK$1.2 billion ($152.89 million), JLL, which has been appointed as the sole agent of the sale, said on Monday. The McDonald's outlets in the locations will remain operational, JLL executive director of capital markets Eunice Tang said in a statement. Hong Kong Economic Times reported earlier on Monday McDonald's planned to sell all of its 23 retail spaces - valued at nearly HK$3 billion in total - in batches, but it would continue operating in existing locations as tenants, and the sale would not affect its operations in the city. McDonald's has around 256 restaurants in Hong Kong, the report said, many in rented spaces. McDonald's Corp could not be immediately reached for comment. In 2017, Chicago-based McDonald's Corp sold an 80% stake in its mainland Chinese and Hong Kong operations to a group that included CITIC Ltd ( opens new tab, its investment arm CITIC Capital, and Carlyle Group for up to $2.1 billion. But the assets remain under McDonald's Corp. The sale of the eight retail properties is offered through a public tender that ends on September 16. JLL said it had already received significant interest from a wide pool of potential investors. All the properties are secured with long-term McDonald's leases, and they are available for purchase either individually or as a portfolio, it added. Overall prime street rents in the first quarter have fallen back to 2003 levels, as Hong Kong's retailers battle shifting consumer habits that have led to a wave of store closures. ($1 = 7.8490 Hong Kong dollars)
Bloomberg
2 days ago
- Business
- Bloomberg
McDonald's Seeks to Sell $153 Million in Hong Kong Store Space
McDonald's Corp. is marketing eight of its retail properties in Hong Kong valued at HK$1.2 billion ($153 million), at a time when the real estate market in the city remains weak. The fast food chain is offloading the shops located in major shopping districts including Tsim Sha Tsui and Causeway Bay while keeping the leases, property agency JLL, which was appointed to handle the tender, said in a statement on Monday.
Yahoo
15-07-2025
- Business
- Yahoo
Seeking Passive Income? This ‘Strong Buy' Dividend Stock Yields 8.6%.
If you're aiming to build a reliable source of passive income, high-yield dividend stocks remain an attractive option. By investing in financially stable companies with consistent dividend payouts, you can enjoy regular income along with potential for decent long-term capital appreciation. Among the leading high-yield dividend stocks, CTO Realty Growth (CTO) stands out for its high yield of 8.6% and sustainable payouts. Moreover, analysts have a 'Strong Buy' consensus rating on the shares of this real estate investment trust (REIT), indicating that they are confident about its prospects. Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! CTO Realty Growth owns and manages high-quality retail properties across some of the fastest-growing markets in the U.S. It focuses on building community hubs that generate solid tenant demand. The REIT's portfolio is built around multi-tenant spaces anchored by essential businesses such as grocery stores, lifestyle retailers, and service providers. These types of tenants ensure consistent foot traffic and create a more resilient tenant mix, which is key for stable cash flow, especially in uncertain economic conditions. The REIT also focuses on acquiring high-potential properties and then increasing value through leasing vacant space, raising below-market rents, and redeveloping key assets. This strategy enhances immediate income and builds long-term value across its portfolio. CTO also benefits from its external management role and ownership interest in Alpine Income Property Trust (PINE), another publicly traded REIT. This relationship broadens CTO's exposure to income-producing real estate and further diversifies its revenue base. The REIT's operational performance remains solid, reflected through strong leasing activity. In the first quarter of 2025, CTO signed over 112,000 square feet of new leases, renewals, and extensions at an average rent of $24.14 per square foot. This was about 25% above its existing portfolio average and highlights the strong demand for CTO's properties and its ability to drive rental income higher over time. At the end of the latest quarter, CTO's portfolio was 93.8% leased and 91% occupied. The REIT has a pipeline of signed leases not yet generating rent that equates to about $4 million in annual base rent, roughly 4% of current cash rents. These leases are expected to begin contributing in the back half of 2025, further strengthening its performance. Further, its development plans also remain solid. CTO continues to make progress on lease negotiations for its 10 acres of undeveloped land. As this site and other leasing deals come online in the second half of 2025, they are expected to serve as a strong growth engine into 2026. Further, despite ongoing concerns around macroeconomic headwinds like trade tariffs, CTO appears well-insulated, thanks to its focus on high-growth markets, diverse tenant base, and well-located properties. CTO also made a notable acquisition in the past quarter, Ashley Park, a 559,000-square-foot open-air lifestyle center in the Newnan submarket of Atlanta. Acquired for $79.8 million, the center has multiple upsides, including significant leasing potential, under-market rents, and a purchase price far below replacement cost. The acquisition brings immediate scale and future income growth. Notably, CTO has been re-leasing anchor spaces vacated by bankrupt tenants at the end of 2024 and early 2025. CTO has already re-leased two vacant anchor spaces and is close to finalizing deals on two more. Management remains confident in achieving a 40% to 60% positive cash leasing spread from these re-leases, which would provide a meaningful boost to income. In summary, CTO Realty's focus on high-quality tenants, properties in high-growth markets, strong occupancy rate, and a solid pipeline of lease commencements positions it well to deliver steady growth and will support its dividend payouts. Wall Street analysts recommend a 'Strong Buy' consensus rating on CTO Realty stock amid macro uncertainty. Moreover, it pays a quarterly dividend of $0.38 per share, reflecting an attractive yield of 8.6%, making it a compelling income stock. On the date of publication, Amit Singh did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
