Tan Sri Lim Kang Hoo (Iskandar Waterfront Holdings Bhd): Act on opportunities from the HSR link

TAN Sri Lim Kang Hoo is the founder of Iskandar Waterfront Holdings Bhd (IWH) and Ekovest Bhd, where he currently serves as executive vice-chairman and executive chairman, respectively. The self-made businessman and Johor-based property tycoon began his involvement in the construction industry soon after completing his secondary education, assisting in the family construction business.

Under his helm, IWH has completed a number of projects in Johor, such as Casa Almyra, Danga Walk, Danga Utama, Danga View Apartment, Tropez Residences and Oasis 1 @ Tropicana Danga Cove.

At the end of last year, IWH formed a consortium with China Railway Engineering Corp (M) Sdn Bhd (CREC) and purchased 60% of the equity interest in Bandar Malaysia from 1MDB Real Estate Sdn Bhd on Dec 31 last year. The consortium will undertake the RM200 billion mega project located on the former Sungai Besi air force base, which will be carried out over three to four phases and likely to take 20 to 25 years to complete.

Lim is also a director of several companies, including Iskandar Waterfront City Bhd, PLS Plantations Bhd, Knusford Bhd and Tebrau Teguh Bhd. Forbes ranked Lim number 26 in the list of Malaysia’s 50 Richest in 2016 with a total net worth of US$550 million (RM2.2 billion).

TheEdgeProperty.com: Building and selling homes — what was it like then and now?

Tan Sri Lim Kang Hoo: I have been in this industry for more than 30 years. After graduating from high school, I joined my family construction business before I founded a civil engineering and construction company with a partner. The company has evolved to become Ekovest Bhd, which is a multi-function construction-based entity listed on Bursa Malaysia. I also founded Iskandar Waterfront Holdings, a government-linked company that was specifically incorporated to be the master developer of 4,300 acres of prime waterfront land in Johor Bahru, known as the Flagship “A” Zone of Iskandar Malaysia.

I remember 15 years ago, people thought I was crazy when I showed them the plans for transforming Johor Bahru into a waterfront city like Shenzhen and Hong Kong. No one was willing to lend me a dollar and people laughed at me. However, with the success of the Flagship “A” Zone, it has proven the sceptics wrong.

Today, some people are laughing and sceptical about Bandar Malaysia as well. It will house a Kuala Lumpur-Singapore High Speed Rail (HSR) terminus station. The project is the first integrated development to be built under the public-private partnership (PPP) model. There will always be people who are sceptical.

Developers have learnt a lot from the 1997-1998 financial crisis. However, to survive in the property development industry today, it is very difficult. So developers must create unique and innovative projects to succeed.

How many homes have you built?

We have built thousands of commercial and residential buildings. At IWH, we have a total landbank of 4,300 acres, most of which are prime waterfront land located right in the heart of Iskandar Malaysia — the fastest growing special economic zone in Malaysia.

The jewel in the crown of our development is Danga Bay — a strategically located waterfront destination straddling the Straits of Johor and overlooking
Singapore. We plan to transform this into a refreshingly different place, offering inspired lifestyles.

Our development master plan envisages the creation of an environment of style and sophistication, with a range of exciting lifestyle options that integrate living, shopping and relaxing — all into one location. Ultimately, the plan is to build an exclusive waterfront sanctuary that effortlessly combines modern amenities with traditional values to offer a truly tranquil environment for Malaysians and foreigners alike.

What was your most memorable project and why?

At the top of the list is Bandar Malaysia — the mega integrated development in the centre of the Klang Valley. We’re very lucky to undertake this 486-acre project and work with the right partner, CREC. The project is one of the beneficiaries of the Kuala Lumpur-Singapore HSR as there will be a terminus in it. The integrated development aims to attract a population of 800,000, plus 500,000 people who travel in and out every day with the HSR. Phase one of Bandar Malaysia is expected to start next year and will cost between RM50 billion and RM60 billion. This phase will sprawl over 100 acres and is expected to be completed in six to eight years.

Buyers are getting younger. How do you engage them?

With technology improving every day, it is important for us to have a company website so that it’s easier for the public to get to know us and be in touch with us. We also engage the newspapers and online news portals.

Your property outlook for 2016/2017?

With cooling measures by the government, the market will be slower, but it depends on the location. The property market all over the world will have its up and down cycles. People have grown from experience after a few cycles, which makes the developer and property buyers wiser, and to know when to buy and when to sell.

What is your aspiration for the Malaysian property sector?

I really hope that people can see and act immediately on the opportunities arising from the implementation of the HSR. I’ve witnessed how the creation of the Iskandar Malaysia economic growth corridor in Johor back in 2006 successfully revived the state in the wake of the Asian Financial Crisis, and I believe that infrastructure such as the HSR will be just as successful. Hence, we became the highest bidder for Bandar Malaysia because we saw the potential of the HSR and the project — the upside will be there. HSR is a boon not just for the property sector. The rail project will open up opportunities to ports, airports, cargo and all other industries along the alignment besides Kuala Lumpur and Iskandar Malaysia.

● Tan Sri Tan Seng Leong (BCB Bhd): Look out for signs of recovery

● Tan Sri Lee Kim Yew (Country Heights Holdings Bhd): Land is the key to accumulate wealth

● Tan Sri Liew Kee Sin (EcoWorld): Achieve greater heights by embracing technology

● Tan Sri Lim Kim Hong (I-Bhd): Well-planned projects less affected by negative factors

● Tan Sri Lim Hock San (LBS Bina Group Bhd): The keys to success are product, location and pricing

● Tan Sri Leong Hoy Kum (Mah Sing Group Bhd): The ability to adapt to change is crucial

● Tan Sri Mohamad Salim Fateh Din (MRCB): Malaysia’s property market will continue to be dynamic

● Tan Sri Eddy Chen (MKH Bhd): We need more liveable homes

● Tan Sri Ong Leong Huat (OSK Property): Build homes according to buyers’ wants and needs

● Tan Sri Lim Soon Peng (Titijaya Land Bhd): Affordability — key to homebuyers’ needs today

● Tan Sri Danny Tan Chee Sing (Tropicana Corp Bhd): Engage customers through social media wisely

This story first appeared in TheEdgeProperty.com pullout on Aug 26, 2016, which comes with The Edge Financial Daily every Friday. Download TheEdgeProperty.com pullout here for free.