The property arm of LKK Group, best known for their Lee Kum Kee oyster sauce condiments, plans to focus on “enhancing services” following its recent rebranding, according to its top executive.
H Properties, formerly known as Infinitus Property Investment, has launched several initiatives and will continue to launch more to become sustainable and keep existing tenants happy, said Ryan Ng, the CEO and executive director of H Properties, adding that it was not keen on competing with Hong Kong’s major developers for prime assets.
“Never say never, but at the moment our priority this year is housekeeping and enhancing our services,” said Ryan Ng, the CEO and executive director of H Properties.
“Going forward, we may explore different asset classes and different markets,” he said, adding that the ‘H’ in the new name stands for “happiness, health, harmony and human-centric”.
The family behind the privately held LKK Group is Hong Kong’s fourth richest with an estimated net worth of US$19.3 billion, according to Forbes.
The rebranding comes at a time when the likes of CK Asset, the flagship property developer of Hong Kong’s wealthiest man Li Ka-shing, and Sun Hung Kai Properties (SHKP), the city’s most valuable developer, have recently snapped up choice parcels of land from the government’s land sale programme at prices that were below market expectations.
CK Asset won a 1.42 million sq ft residential plot in Kai Tak for HK$8.7 billion (US$1.1 billion) in December, 25 per cent below market expectations, while SHKP won the tender for an 11,537 square metre (12,4183 sq ft) site in Mong Kok earlier this month for HK$4.72 billion, a third less than the low end of the plot’s valuation.
Ng said H Properties’ initiatives include refurbishing the sixth floor of Infinitus Plaza, a grade A office building in Sheung Wan. The space, previously occupied by a tenant, has been converted into a shared space called “Happy Moments”, allowing existing clients to use facilities such as the gym, relaxation room, nursery room and event and meeting rooms.
An Infinitus Plaza app, meanwhile, encourages tenants to walk more, with earned points eligible for perks. The company is also catering to the needs of its tenants in small ways, such as letting them borrow hair dryers and umbrellas during the rainy season and giving them cool drinks during the summer.
H Properties has also launched a “happiness index”, to measure client satisfaction.
These measures are critical for H Properties to keep tenants happy amid a glut in Hong Kong’s office market, Ng said.
Hong Kong’s new office stock is estimated to hit 14.5 million sq ft in 2023, a record high and the equivalent of the total gross floor area of every building in the core Central business district, according to property consultancy CBRE.
The company’s portfolio also includes the Walkie Talkie in London, a 688,000 square feet grade A office tower officially known as 20 Fenchurch Street, acquired in 2017 for £1.3 billion (US$1.58 billion). It also owns the mixed-use Eastcheap Estates, also in London, the Infinitus Centre and Infinitus Plaza in Guangzhou and the Infinitus Tower in Shanghai.
H Properties has been receiving offers for projects from across the globe, including from Europe, North America, Australia, Japan, Southeast Asia and even China, Ng said.
“We have been seeing different asset classes, for example senior housing, data centres and logistics facilities,” Ng said, adding that the company has even received offers for islands.
The company is looking into the possibility of investing in senior housing as the world’s population continues to grey rapidly, but no decision has been made so far.
“Don’t forget, in most regions, people are going to get older and older,” Ng said.” For example in China, in 10 years the average age of the population would be above 65 and they would account for 40 to 50 per cent of the population, so what do they need there?”
He said the challenging part of acquiring an asset was studying and justifying such a purchase, and whether H Properties has the expertise to manage the asset and run it profitably.
“We have a super long-term strategy,” he said.
“We want to buy [assets] that can last a long time and deliver the right benefits to the people. We are trying to decode the future and once we find the right direction, then that will make our decision easier.”