ShinMac Company Ltd. (McDonald's Korea) is up for sale, but some key pieces of real estate owned by the global fast-food chain in the country have been excluded from the deal. According to investment banking industry sources, February 8, 2023, three key real estate properties held by McDonald's Korea are not included in the deal currently under negotiation with Dongwon Industries Co., Ltd. (KOSE:A006040). The holding company of Dongwon Group turned out to be the sole candidate that joined the bidding process last month.

Given that McDonald's business model is based on acquiring land in populous commercial areas and leasing it out to franchise partners, real estate owned by McDonald's Korea has been featured as a key attraction of the sale. McDonald's Korea has maintained a vast amount of real estate across the country worth over KRW 206 billion (USD 163.5 million), comprised of buildings worth of KRW 69.3 billion and land worth KRW 136.8 billion, as of 2021. Market watchers view the decision to exclude some properties from the sale could reflect the intention of McDonald's Corporation to enjoy stable rental profits from its Korean branches.

Also, the exclusion of some of the priciest real estate owned by the fast-food empire would lower the sale price, which eases the potential financing burden on a buyer. Some view that it would be almost impossible to develop McDonald's real estate assets, even if a new buyer purchases of all of them, as the global headquarters put hefty restrictions and controls on operations, leaving little room for a new owner to develop any of the properties unilaterally. Market watchers thus think Dongwon Industries made the bid seeking synergy, rather than the use of McDonald's real estate assets.