Young blood at CapitaLand

Source : Straits Times – 20 Jun 2009

PROPERTY giant CapitaLand yesterday announced wide-ranging senior management changes, with more of its younger officers being blooded to take over leadership roles as key stalwarts said farewell.

The group’s serviced residence arm, The Ascott Group, and its China operations will see the biggest shake-ups.

Long-time high-ranking executive, chief investment officer Kee Teck Koon, 54, will retire on Aug 1. He has been a confidant of CapitaLand president and chief executive (CEO) Liew Mun Leong.

Mr Liew said Mr Kee had served the group for 13 years and wished to retire.

‘He has been working with me for 20 years, and we are more than colleagues…In fact, two years ago, he already wanted to retire…the crisis just started, so I said, ‘you stay around and help me’.’

Mr Kee’s departure follows that of stalwart Tham Kui Seng, a trusted deputy of Mr Liew who left late last year to pursue personal interests, leaving his chief corporate officer post vacant.

A few months earlier, in September, CapitaLand Retail and CapitaMall Trust Management CEO Pua Seck Guan left.

The new generation includes the CEO of CapitaLand Commercial and co-CEO of CapitaLand Financial, Mr Wen Khai Meng, 54, who will relinquish these posts. He has worked with Mr Liew in various capacities since 1982, and will take over Mr Kee’s position, as well as become deputy chairman of CapitaLand Commercial.

Mr Liew also found a successor for the role left vacant by Mr Tham, a President’s Scholar.

Ms Jennie Chua, 65, will relinquish her role as Ascott’s president and CEO to take over the job, but will remain as a board member in the Ascott and Ascott Residence Trust.

Mr Liew has also promoted Mr Lim Ming Yan, 46. Mr Lim will relinquish his role as CEO of CapitaLand China Holdings to his deputy Jason Leow and take on the Singapore-based CEO post of Ascott.

Mr Lim, who was sent to China nine years ago to expand the group’s business there, will also become the deputy chairman of CapitaLand China executive committee (CCEC). It is a new committee – chaired by Mr Liew – formed to better coordinate and align the group’s business operations in China. This will be Mr Liew’s ‘China Cabinet’, as he calls it.

China accounts for 45per cent of CapitaLand’s total earnings before interest and tax, making the region its top contributor.

UBS Investment Research has maintained its buy call on CapitaLand, saying its China business remains under-recognised.

To illustrate the improving residential market there, Mr Liew said he recently sold his Shanghai condominium unit – which he bought for 8,000 yuan (S$1,700) persqm six or seven years ago – for 26,000 yuan persqm.

‘With CCEC, we will grow another CapitaLand in China,’ said Mr Liew. Listing the business in China is a possibility, he said.

China will also be one of the playgrounds for Ascott, which Mr Liew wants to reinvent into a ‘real estate company with a hospitality arm’.

‘I need more people who understand real estate, how to buy land, how to develop, how to sell,’ he said.

The bulk of Ascott’s earnings in recent years has come from trading real estate, with hospitality a bit player.

‘Hospitality is a laborious way of making profits…It is like chipping stone from the quarry,’ he said.

But it is an ‘important enabler’, otherwise the value of real estate will not grow.

Other management changes include Mr Ee Chee Hong moving up from his deputy CEO (commercial) role to being CEO of CapitaLand Commercial.

Deputy CEO of CapitaCommercial Trust Management Ang Siew Yan will become deputy CEO of CapitaLand Financial.

Mr Goh Soon Yong, now deputy CEO of CapitaLand Retail China, will become CEO.

Mr Liew will also be sending personal assistant Lee Chee Koon to China to be the managing director of Ascott China.

The CEO changes announced yesterday involved mostly officers in their 40s.

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NOT TIME TO STEP DOWN YET – TOO MUCH TO DO

‘As a group, we still have a lot of strategic milestones to achieve. There is work outstanding I need to fulfil, particularly with the global crisis. I need a few steps more and I am enjoying the work… I think it would be irresponsible to say I will go away to smell roses in my garden…

My next milestone is to create a pipeline of successors.’

Mr Liew Mun Leong, 62, on retiring

HEARTENING RETURN IN CONFIDENCE

‘If you look at the economy, the lead indicators show that it is improving… but you still have hang-ups in some lead indicators like unemployment…

I am optimistic, but you can’t be totally sure that the green shoots will straight away shoot all over the place. You still have green shoots and brown patches. I think we’re saying there is a restoration of confidence. That’s very important.’

Mr Liew, on the property market

JENNIE CHUA

CapitaLand chief corporate officer, board member

LIM MING YAN

Ascott Group CEO, deputy chairman of CapitaLand China executive committee

WEN KHAI MENG

CapitaLand chief investment officer, deputy chairman of CapitaLand Commercial for Ascott and Ascott Residence Trust