They started out as a family timber business. Then, in the late 1990s, upon winding down, they found themselves with little more than a handful of empty timber sheds.
For most, these structures might have been written off. But for Kelvin Lim, executive chairman and group managing director of LHN Group, they became the foundation for an entirely new kind of business.
“We realised there was demand,” says Lim in an interview. “So we found more sheds, more space … and that’s how it started.”
What began as an attempt to lease out redundant industrial space has since grown into a publicly listed enterprise operating across Singapore and the region. Today, LHN Group specialises in a deceptively simple-sounding mission: optimising space.
But what does that really mean?
In the business of optimising space
When asked how he would describe LHN Group’s business to someone unfamiliar, Lim says: “We look for old or underutilised buildings, then upgrade and reconfigure them to improve the net lettable area before leasing them out.”
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Unlike property developers, who profit from one-off sales, or contractors who build according to specifications, LHN Group generates recurring revenue by reconfiguring how already existing space is used. In real estate terms, this means boosting the efficiency of a building, maximising the proportion of usable area relative to circulation space like corridors and stairwells.
This distinction matters. “In the past, buildings were designed with very wide corridors, sometimes 3m across. Today, 1.5m to 1.8m is enough. That difference matters when space is expensive,” Lim adds.
Customer needs, not just lettable space
Core to LHN Group’s strategy is the astute observation that space is more than square footage; it is a direct reflection of how we work and live have evolved with time. This mindset has driven the company into a range of innovative formats, from co-living to self-storage, each tailored to shifting demographic and economic trends.
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With their co-living concept, Coliwoo, LHN Group is redefining what compact urban living can look like. Early models emphasised shared kitchens and communal lounges. Meanwhile, current offerings favour self-contained micro-apartments, each around 200 sq ft, accompanied by en-suite bathrooms, compact kitchenettes, and even in-unit washer-dryers.
“It’s about flexibility,” Lim points out.
“People want their own space but also shared amenities like gyms and co-working lounges. We provide both.”
With their self-storage facilities, they go even further, combining logistics with lifestyle. Those targeted at e-commerce businesses, for example, come with uniquely tailored supplementary facilities, including packing stations, co-working areas, photo studios, and even live-streaming stations.
This attention to customer needs is evident in how Lim shares that: “Anywhere we operate, we have to be uniquely that country.” First comes market research and then feedback from customers. It is not simply a matter of photocopying what is done elsewhere and doing it in Singapore.
Cities are changing, and so are we
Lim is acutely aware of the deeper trends that are reshaping cities. He sees a world where mobility is rising, long-term home ownership is declining and urban space is becoming costly. All this while, our demands are also evolving.
“People don’t stay in one place for long anymore,” he notes as an example. “Work is more regional, more transient. That’s why co-living works.”
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“Real estate prices are rising everywhere. In Europe and Japan, people rent rather than buy. That trend is coming to Asia.”
Looking forward, Lim is clear-eyed about the promise and disruption of technology. Even before the pandemic, LHN Group had adopted Microsoft Teams to coordinate its own business activities across markets. Today, he sees AI and automation as transformative forces for the industry.
“In the future, one person might do two or three jobs thanks to AI. Even hawker stalls are using robots to fry noodles. It’s about increasing productivity. But it also means the world will need new jobs, more people and smarter ways of working.”
Whether it’s deploying AI to streamline operations, exploring new space concepts, or responding to the needs of its customers, LHN Group sees adaptability as its core strength. Having its origins as a completely different business, one could argue that transformation is in LHN Group’s very DNA.
Not a risk if you know what you are doing
To outsiders, the idea of leasing entire old buildings upfront might seem like a gamble. What if tenants don’t come? What if plans fall through?
When asked what gave him the conviction to pursue the strategy LHN Group has taken, Lim says: “If you know how to do it, it’s not a risk. It’s know-how.”
This is the kind of straightforward and practical approach that seems to define Lim’s leadership. At one point in the interview, he shares how routines are the backbone of his success so far.
“You have to start your day well,” he says matter-of-factly. Likewise, his strategy for managing his people does not require much justification.
Lim says that many of LHN Group’s department heads began as management trainees. Many have since grown alongside the company, starting families, buying homes and becoming mentors themselves. Overall, he attributes this to a culture of open knowledge-sharing.
“Some people say if you teach your staff too much, they might leave. I say, if they learn and grow, that’s good for everyone. We have a responsibility to pass on what we know.”
For all its complexity, the business comes down to a simple idea: to make better use of what is already avaiable. It is about identifying the potential in the overlooked and building not just for profit, but also for the people who live and work in the spaces they create.
About LHN Group
LHN Group is a real estate management services group headquartered in Singapore. It has four main business segments: space optimisation business, property development business, facilities management business and energy business.
Under its space optimisation business, LHN Group acquires its own properties, secures master leases of unused, old, and under-utilised properties, and transforms them into more efficient usable spaces, which LHN Group then leases out to its tenants.
The property development business engages in (a) property development activities such as the acquisition, development and/or sale of various types of properties; and (b) property investment activities relating to the business of property development, property investment and property management.
LHN Group’s facilities management business offers car park management services and property maintenance services such as cleaning, provision of amenities and utilities, and repair and general maintenance.
Last but not least, LHN Group’s energy business offers sustainable energy solutions by providing electric vehicle charging stations and installing solar power systems for properties it manages and for its customers.
LHN Group has business operations in Singapore, Indonesia, Myanmar and Cambodia.
About kopi-C: The Company Brew
kopi-C is a regular column by SGX Research in collaboration with Beansprout (https://growbeansprout.com), an investment advisory platform licensed by the Monetary Authority of Singapore that features C-level executives of leading companies listed on the Singapore Exchange. These interviews are profiles of senior management aimed at helping investors better understand the individuals who run these corporations
