Can You Win in Real Estate Without Building Anything? LHN Group Aims to Do Exactly That

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,” he says. “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?

We are in the business of optimising space

When asked how he would explain LHN's business to someone who has never heard of them, this is how Kelvin describes it: "We look for old or underutilised buildings, then upgrade and reconfigure them to improve the net lettable area, before leasing them out."

Unlike property developers, who profit from one-off sales, or contractors who build according to specifications, LHN 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 three metres across. Today, 1.5 to 1.8 metres is enough. That difference matters when space is expensive," Kelvin explains.

Customer needs, not just net lettable space

Core to LHN’s strategy is the astute observation that space is more than square footage, it is a direct reflection of how the ways in which 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.

With their co-living concept Coliwoo, LHN is redefining what compact urban living can look like. Early models emphasised shared kitchens and communal lounges, while current offerings favour self-contained micro-apartments: each around 200 square feet, accompanied by en-suite bathrooms, compact kitchenettes, and even in-unit washer-dryers.

"It’s about flexibility,” Kelvin 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 Kelvin 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

Kelvin is acutely aware of the deeper trends 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."

"Real estate prices are rising everywhere. In Europe and Japan, people rent rather than buy. That trend is coming to Asia."

Looking forward, Kelvin is clear-eyed about the promise and disruption of technology. Even before the pandemic, LHN 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. 

It is 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 about what gave him the conviction to pursue the strategy LHN has taken, Kelvin shrugs and replies, "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 Kelvin'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 is one that doesn't require much justification. 

Kelvin shares that many of LHN’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."

In the end, for all its complexity, the business comes down to a simple idea: to make better use of what is already available. It is about identifying the potential in the overlooked, and to build not just for profit, but also for the people who live and work in the spaces they create.

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About LHN Limited

LHN Limited (the “Company” and, together with its subsidiaries, the “Group”) is a real estate management services group headquartered in Singapore with the ability to generate value for its landlords and tenants through its expertise in space optimisation. 

The Group currently has four (4) main business segments, namely: (i) Space Optimisation Business; (ii) Property Development Business; (iii) Facilities Management Business; and (iv) Energy Business. 

Under its Space Optimisation Business, the Group acquires its own properties, secures master leases of unused, old, and under-utilised commercial, industrial, and residential properties, and through redesigning and planning, transforms them into more efficient usable spaces, which the Group then leases out to its tenants. Space optimisation generally allows the Group to enhance the value of properties by increasing their net lettable area and potential rental yield per square foot. 

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. 

The 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 principally to the properties it leases and manages, as well as to external parties. 

The Group’s Energy Business offers sustainable energy solutions, including the electricity retailing business, provision of electric vehicle charging stations and installation of solar power systems for properties we manage and for our customers. 

The 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 that features C-level executives of leading companies listed on SGX. These interviews are profiles of senior management aimed at helping investors better understand the individuals who run these corporations.

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