Wednesday 9 September 2009

Next generation builders shaping family legacies

Young players in property groups making their mark in family business

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Guanyu said...

Next generation builders shaping family legacies

Young players in property groups making their mark in family business

By EMILYN YAP
07 September 2009

(SINGAPORE) While building homes will always be just a Lego-brick memory of their childhood for most, some under-40s - hailing from notable families in real estate - have already overseen the building and marketing of gleaming hotels, homes and malls.

In the process, these next-generation builders will have a hand in shaping Singapore’s landscape, and also their families’ legacies.

Some have been active in the hospitality industry. LC Development (LCD) executive director Kelvin Lum, 35, is closely linked to Crowne Plaza Changi Airport, a 320-room hotel which opened its doors in May last year. The company is on the lookout for a second hotel in Singapore.

Mr. Lum is the son of David Lum, who is managing director at both Lum Chang Holdings and LCD. LCD began as the former’s listed subsidiary but both firms de-merged in 2005. LCD now eyes the hospitality pie while Lum Chang is largely in the construction and property development businesses.

The younger Lum worked in a bank for several years before joining LCD in 2002. The move was unplanned, he says. ‘The company was looking at expanding its hotel arm, so I was brought in to look at opportunities in the region.’

He has a younger brother in his early 30s, Adrian Lum, who is business development manager in Lum Chang’s property division.

There is also Allen Law, director at Park Hotel Group which his family founded. The group bought Crown Prince Hotel along Orchard Road for $300 million and is revamping the property into the five-star Grand Park Orchard, which will come with luxury retail space. It also built the four-star Park Hotel Clarke Quay.

Other names which come to mind include Ho Bee’s senior manager in business development and marketing Nicholas Chua, son of group chairman and CEO Chua Thian Poh. Nine third-generation members of the Kwek family - which founded Hong Leong Group - are also involved in the group’s businesses.

Contrary to popular belief, not every young scion has nicely done-up properties handed to them on a plate. ‘A lot of them are working through the ranks up,’ observes Knight Frank chairman Tan Tiong Cheng.

LCD’s Mr. Kelvin Lum recalls his early days in business development and project management, when he kept reference books at hand as he learnt about the trade. ‘When I first started it was difficult, going from banking into the brick and mortar business,’ he says. ‘You have to be humble, you have to learn, listen and observe.’

Any shortfall in experience is not keeping the younger generation from pushing the envelope. Jack Investment business development director Han Minli has been the face of marketing efforts for the new Iluma. Unlike most other malls, it is gunning for unique brands and houses more entertainment offerings.

Jack Investment owns Iluma and other properties such as Leisure Park Kallang. Ms Han, under 30, is said to be related to the company’s owner Han Chee Juan.

The younger generation tends to be better-educated and would have seen more innovation at work from overseas trips, says Knight Frank’s Mr. Tan. This makes them ‘more sensitive to new trends.’

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Many young scions are also aware of stereotyped views about them. ‘It’s unavoidable, when you meet external people and they have that preconceived idea that so-and-so is the towkay’s (boss’s) son and they assume certain things,’ LCD’s Mr. Lum says.

But because the firm is listed and is run just like any professionally-managed company, these people do change their minds in the course of work, he adds.

The delicate question of succession also arises in companies which house a few family generations. Because of parental instincts, ‘given the choice, I guess fathers would like to pass the baton to their sons, provided they are capable,’ Mr. Lam says.

But he underlines that professionals should take over if family is not up to the job. His father ‘will not compromise the company and give it to someone who is incompetent,’ he says. ‘No self-respecting CEO or MD in the right mind would do that.’