LHN Group Executive Chairman and Group Managing Director, Kelvin Lim joined the company in 1997.
When Kelvin Lim first joined the company that his father started in 1991, LHN Group was just a small lessor of industrial spaces. Now with over 30 properties in its business portfolio, we speak to the man behind LHN’s transformation to an industry leader in space optimisation.
By Nikki De Guzman
Taking over a family-led business comes with not just the responsibility of continuing a legacy but the challenges of maintaining the success of the business—if not growing it.
Since joining the company in 1997, LHN Group has transformed and grown from strength to strength to become an industry leader in a specialisation they term space optimisation.
In our conversation, LHN Group’s Executive Chairman and Managing Director Kelvin Lim looks back to almost two decades in the business as much as he looks ahead to the next years to come.
Creating new out of the old
LHN Group has gone through a significant transformation since the company was first founded in the early 90s.
“My father started the company and back then, it was not in the real estate business,” Lim said.
LHN, which started off in the saw mill and timber trading business, only started out leasing underutilised spaces in 1991 when the trading business began to enter fallow times. As production wound down, excess space became more visible, prompting some consideration in the change of its use.
The chairman at the time, Lim Hean Nerng, his father, saw a potential business in leasing these spaces to tenants in the wood-working industries. When that business started to gain traction during the time the economy began to recover from the Asian Financial Crisis in 1997, the company started expanding the leasing business to a broader tenant market.
The younger Lim joined the company in 1997, and took over the business with his sister Jess Lim, who is currently the group’s deputy managing director.
“Back then the focus of the business was subleasing of spaces. It was only until early 2000 that we started space optimisation, logistics and facilities management—with the main focus on space optimisation.”
When I asked Lim for the reason behind the shift, he said: “Being in the business for almost 20 years, I have learned that in any kind of business it is important to be adaptable—we cannot just focus on one industry because if we do, our growth will be limited.”
“We have to constantly be willing to try new things to adjust to the fast-changing environment,” Lim added.
And try, they did. Following the success of leasing out spaces to industrial tenants requiring warehousing, open storage and factory purposes, LHN Group began to expand its portfolio of space-optimised properties to include commercial projects in 2007. This move was marked by securing the master lease of LHN’s first commercial property at 10 Raeburn Park.
The office site of over 162,000 sq ft of gross floor area was once home to Gan Eng Seng Secondary School. The development is now used as office spaces by various companies, and also houses the group’s home office. 10 Raeburn Park is also the location of the group’s first serviced offices under the GreenHub brand which was launched in 2012.
But according to Lim, none of the company’s growth would have been possible without the opportunities.
“When a company is small you… think you can only do whatever is available to do, but because I have been very adaptive and have learned a lot through the experiences [in running the company], I kept looking for opportunities which eventually helped [LHN] grow,” he said.
Leading the pack
As we continue to discuss the tremendous growth the company has witnessed over the years, I couldn’t help but notice how Lim would always mention how his team has helped in the company’s progress.
Prior to the interview, while I was ushered to the board room where I was to meet Lim, I learned that he had just wrapped a discussion with members of staff that he manages directly. They were invited to sit down with us for the interview and later on helped to bring out a more personal side to their boss.
Lim was appointed as LHN’s Director in 2014. In addition to overseeing the group’s overall investment activities “to ensure that sound and profitable investments are made,” he also oversees the group’s marketing efforts and operations.
“I’m responsible for everything,” he quipped.
But Lim chooses his words carefully and throughout the interview, takes extended pauses when speaking about himself. He spoke in candid terms about his personal life and experiences since joining LHN.
It gradually changes, however, when talking about the company and the team he leads. When I asked him about his achievements and accolades – citing research materials I gathered prior to our conversation – Lim spoke not of medals and recognitions but of a team whom he said is the best at what they do.
“I think my biggest achievement was being able to build a team that is very good with what we specialise in. My team right now is all about that.”
Future perfect
Amid its continuous success in the commercial and industrial space optimisation, Lim said the plans of growing the business does not end there.
Just recently, the group launched a new concept development called PickJunction. PickJunction is a platform that brings people closer to their local community of artisans, boutiques, and studios. He said the creation of this business arm is part of its efforts in adapting to the changing ways of business especially through modern technologies.
“[What the team does is they] curate a tight selection of independent brands from old guards to newbies in a range of goods and services – from food to fashion, and furniture,” Lim said.
PickJunction currently showcases the businesses via a digital platform, but according to Lim, the wheels are already in motion to expand the showcase to spaces within the properties it currently manages.
Last year, LHN ended the dry spell in Singapore’s Stock Exchange as it marked the year’s first initial public offer.
“With our listing, we are now in an even stronger position to drive the expansion of our core business in the ASEAN region, and aid LHN as we embark on the next stage of growth,” Lim said.
LHN currently manages 38 commercial and industrial properties in Singapore and currently enjoys around 94 to 95 average occupancy across these properties as of the previous quarter in the current financial year. But while business is already doing well in Singapore, Lim said the company is still on the lookout for expansion opportunities here and abroad.
LHN had already began launching several residential and commercial projects in Southeast Asia. Just in September last year, the group opened a second GreenHub suited office in Jakarta bringing the serviced office arm’s portfolio to a total of five properties across Asia.
Lim said the group is also looking at emerging markets in the ASEAN region, as well as China.
“We are looking to expand our business over these countries particularly for space optimisation, as well as the logistics business, serviced offices and serviced residence arms,” Lim said.
With a promising outlook for the business in the coming years, I asked him what is one important lesson he learned in his 17 years in the industry. He said: “If you want to be good at one thing, perseverance is the way to go. It may not be easy at first, it may not be easy all the time, but if you keep at it, you’ll be good at it.”
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