TYCOON Tan Sri Lee Kim Yew, who founded Country Heights Holdings Bhd (CHHB) in 1984, is known for risk-taking and innovation.
In the 1980s, the 63-years-old took a daring step to transform the Hong Fatt Mine, the world’s largest open cast tin mine in Seri Kembangan, Selangor, into a flagship development known as Mines Resort City that surrounds a 60.7ha serene lake.
The Hong Fatt Mine covered an area of 530ha, including the lake. The government alienated the land to CHHB in March 1988 for recreational and tourism purposes.
Mines Resort City is now home to The Mines shopping mall, Mines International Exhibition & Convention Centre (MIECC), Philea Mines Beach Resort (formerly, Mines Wellness Hotel), Mines Resort & Golf Club, Mines Waterfront Business Park, Palace of The Golden Horses and GHHS Healthcare.
Lee owns the Mines Resort & Golf Club while the rest belongs to CHHB, except for The Mines shopping mall, which is owned by CapitaMalls Malaysia Trust.
The Mines Wellness Hotel was leased for 15 years to a third party — Philea Mines Beach Resort Sdn Bhd — who rebranded it Philea Mines Beach Resort.
TRANSFORMING CHHB
Lee, who has inspired many people to achieve unexpected or remarkable results, now aims to transform CHHB from a pure property player into a group that focuses on wellness tourism and lifestyle product offering.
He said the transformation represents the comeback of CHHB, calling it “Country Heights 2.0”.
“We have been quiet for a while because no banks wanted to lend us money for our expansion. Although the group has about RM2 billion worth of assets with only about RM200 million in borrowings, all banks have rejected our application.
“I do intend to appeal to the government for help in speaking to banks and coming up with new policies to assist businesses across the board. I have been left to suffocate following the Inland Revenue Board’s seizure of my fixed deposits amounting to RM126 million last year. Although the amount has been settled, banks are still not lending.”
Lee said there is a strong need to venture into new businesses because of growing competition in the real estate sector.
“There is too much competition in the property sector. There are so many government-linked companies in the market involved in property development. We are private developers and as a listed group, we have our shareholders to answer to, so we need to diversify the business and generate income.
“We want to be involved in an area where there is not much competition so we can grow the business. There are a few things which the board is considering and we will move there at a matter of time,” he told NST Property.
Lee, who has over 30 years of experience in developing residential, industrial park, hotel and leisure, commercial and recreation projects, is raising RM1 billion for its “war chest” to help fund four new business ventures.
The new ventures involve restrategising the group’s hospitality and resorts segment, developing a wellness, anti-aging and aesthetics business (wellness hub) and establishing a Mines Car City Centre (MCCC), both in Mines Resort City, as well as setting up the Cheng Ho Islamic Trade and Financial Centre in Melaka.
“The war chest fund is also a standby fund for us to invest in new acquisitions in the future to expand the business,” he said after the group’s shareholders meeting here recently.
The biggest among the four ventures is the MCCC, which will have a gross development value (GDV) of RM2 billion.
The project, managed by Lee’s son and CHHB group executive director Lee Thai Young Matahari, will see the 2.5 million sq ft MIECC be transformed into the MCCC, which is touted to be the first and largest automotive expo centre in the Asean region.
The MCCC will provide car-related services, including loan applications, insurance and Puspakom checks. It will also feature serviced apartments and a trade centre, Lee said.
CHHB is in talks with Goldenport Holdings Inc — the parent firm of China Grand Touring (GT) Championship — to host an Asean GT festival at the MCCC and for the firm to potentially invest in the project.
“We aim to set up an Asean GT to bring in racers from the region and fill the void left after the removal of the Formula One race in Sepang. We will be creating an ecosystem to link together the real estate, exhibition space and automotive industry.
“We hope to complete this project within 24 months. We will commence construction as soon as we get the funding,” he said, adding that a driving range will also be included in the MCCC development.
Lee said for the wellness hub, besides anti-aging and aesthetics facilities, it will also house a retirement village, and the total GDV for this development is about RM1.5 billion.
As for the Islamic financial centre in Melaka, the development will include a one million sq ft building worth RM1 billion.
Lee said of the total area, 800,000 sq ft will be allocated for offices and serviced apartments and the rest will be a trade centre for silk and Pu’er tea (a variety of fermented tea produced in Yunnan province).
“With all these new business ventures coming in, we expect to turn the company around in the next 12 months, provided we are able to secure the RM1 billion fund to carry out the four new business ventures,” he added.