LHN: Reshapes Urban Spaces with Artistic Flair

LHN secures master leases of unused, old and under-utilised properties and transforms them into creative, usable space such as 18 Tampines Industrial Crescent (above) for sub-lease. (Photo: Company)

For Kelvin Lim, Executive Chairman and Group Managing Director of property management services group LHN Ltd, less is usually more.

Lim, who has a penchant for the minimalist aesthetic, prefers unbroken expanses and clean lines in his living and working areas. Using a play of natural light, soft colours and crisp detail, he goes for serene, uncluttered spaces that are simple yet stylish.

"I love that Zen look - the mix of geometric lines and white space," he said. "For our previous home, I designed a skylight that stretched from the living room to the bedroom - it was a feature that added warmth and radiance to the whole house."

Lim's eye for design plays a key role in LHN's space optimisation business, where the Group secures master leases of old and underutilised properties, and through a process of innovation and planning, followed by renovation and refurbishment, transforms them into creative, usable space.

The value of these industrial, commercial or residential units is enhanced by raising their net lettable area as well as potential rental yield per square feet.

LHN also offers the GreenHub brand of suited offices - which are ready-to-work, premium-fitted and energy-efficient units - in Singapore, Indonesia and Myanmar. Other services include its facilities management business, comprising cleaning and related property maintenance, car park management and security services, as well as its logistics business, which includes chemical transportation services and container depot handling.

Lim, 39, has more than 19 years of experience in the leasing, facilities management and logistics business.

He was appointed LHN's Group Managing Director in 2008, before taking on the role of Executive Chairman in 2015. His foray into the real estate industry began more than two decades ago, when he joined the family business.

"The family business had shifted away from wood trading operations, as it was becoming a sunset industry in the late '90s. When I joined, my role was to rent out our vacant warehouse and factory storage space to other companies in the woodworking industry," he recalled.

"After the Asian Financial Crisis, we received many enquiries from contractors who needed space to store their equipment and scaffolding."

There was little value-add from renting that space, so Lim began to rethink the company's strategy.

We try to strike a balance between occupancy and rental rates, but if we need to choose between the two, we would reduce rentals to reach our target occupancy rates.

- Kelvin Lim
Executive Chairman

LHN Limited

Another competitive strength is LHN's design skills. "Most of the buildings we take over are quite old, and our job is to rejuvenate these structures - restore their former charm and find modern uses that can be integrated into the project," Lim said.

That requires a balance of creativity and objectivity.

"When we come up with a design theme for the project, we need to take into consideration its original concept. We are in the business of master leases - we're not owners of the property, so we can't overdress it or be too heavy-handed in our approach," he noted.

"Otherwise, we end up with a refurbished property that doesn't blend in with the environment and cost overruns."

LHN's car park management services for the government and private building owners includes an online portal for users to manage car parks and monitor activities remotely. (Photo: Company)
Take for example the Phoenix Park office campus at 300 Tanglin Road, which previously housed Singapore's Ministry of Home Affairs.

"It's a heritage site, but because of its use by the Ministry, security was very tight - there were multiple gates and high fences with barbed wires. We had to remove most of the fencing to reveal the original colonial architecture," Lim recalled.

The Group also carried out a significant amount of landscaping, and added amenities like childcare centres and cafes, to turn the site into a commercial development that was lush yet modern.

"Previously, it was like an army camp. Now, it has the feel of a garden community, and retains most of its original character, while the net lettable area has increased by 10%," he added.

Looking ahead, LHN plans to expand its GreenHub brand in Indonesia and Myanmar with more locations, as well as its Work + Store self-storage solutions in Singapore.

"Companies in the info-communications and e-commerce sectors are growing rapidly, while others are streamlining their operations," Lim said.

"Self-storage options are suitable for new start-ups or companies that are downsizing, while serviced offices are good for businesses that want to remain lean and nimble."

The Group will continue to explore new markets in ASEAN, and over the longer term, China, through its master lease business model.

"China is a very big market that is experiencing rapid urbanisation. In the Tier 1 and 2 cities, such as Shanghai and Xiamen, we're seeing a lot of opportunities to rejuvenate older buildings," he added.

Going into joint ventures makes sense for us - they allow us to spread our risk, gain valuable partners to drive the business, and enable us to build in a management fee for such projects.

- Kelvin Lim
Executive Chairman

LHN Limited

• Due to the sluggish global economy, LHN expects demand in the real estate sector to remain weak as businesses continue to streamline and/or delay expansion plans. Its industrial and commercial properties, purposefully chosen for their locations outside the central CBD area, stand to attract firms relocating to properties with cheaper leases outside or in the city fringes.
• The Group is also targeting companies in the fast-expanding e-commerce sector and new start-ups by rolling out its "Work + Store" office concept at five locations in Singapore.
• Beyond Singapore, LHN's operations in Thailand, Indonesia and Myanmar remain stable. The Group intends to further grow its businesses in ASEAN, and will be looking out for acquisitions, joint ventures and/or strategic alliances that will provide access to new markets, customers and businesses.