As the CEO of Lendlease Global Commercial REIT (LREIT), Kelvin Chow has led the organisation towards considerable success. In 2022, LREIT successfully raised a record S$1.7bn (US$1.3bn) as part of its acquisition of Singapore-based mall Jem. It was the largest ever such transaction within the Singapore REIT industry, drawing not only global attention but LREIT’s subsequent inclusion into key benchmark indices – the FTSE Nareit and the iEdge S-REIT Leaders.
What made this achievement even more unique was its accomplishment at a time marked by great uncertainty, while the Covid-19 pandemic and the Ukraine war were ongoing.
‘I let the business case lead my decision-making’
Chow candidly reveals: ‘To be honest, we didn’t have the full support from our sponsor, who was not convinced it was the right time to do it. You don’t normally acquire something accretive when interest rates are high.
‘But I let the business case lead my decision-making. It was because of those uncertainties that the previous fund managing Jem was willing to let the asset go.
‘I also recognised that despite the ongoing restrictions, 58% of the mall’s tenants were considered essential services. This meant that the acquisition represented not just a source of future growth but also provided us with cashflow to sail through an uncertain period.’
From CFO to CEO
While at his previous two REITs, Chow played a supporting role as CFO. At LREIT – which is listed on Singapore Exchange – he is now at the helm with overall responsibility for leading the business forward. When asked about what has helped him to perform in his new role as CEO, he lists three things.
‘I think firstly, my ability to understand numbers gives me an advantage. But it’s also important to not be constrained by the numbers. For instance, a typical finance person may crunch the numbers and conclude it does not make sense to pursue a particular business direction. But I ask myself, how do I come up with a solution to make the numbers work? To do that, you really have to be very focused on your business objectives.’
LREIT
Lendlease Global Commercial REIT is a Singapore real estate investment trust with the principal investment strategy of investing, directly or indirectly, in a diversified portfolio of stabilised income-producing real estate assets located globally, which are used primarily for retail and/or office purposes. The business has won a number of accolades, including: Best Investor Relations (Gold) at the Singapore Corporate Awards 2024; Best Overall ESG and Profitability REIT (Platinum), Asia Pacific Best of the Breeds REITs & Real Estate Investment Awards 2024; and first place in the Retail (Listed) category for five consecutive years since joining GRESB, a global sustainability benchmarking organisation.
The second aspect that Chow feels is crucial is the networking component. ‘Personally, I am an introvert, but I understand how important it is to step out of my comfort zone to interact with others and see issues from different perspectives, be it the marketing angle or the operations angle. This is how you can better understand the business and feel the pulse of the market.’
‘You really have to believe you can influence and drive agendas’
The third thing that he says has helped him achieve success is viewing his role as that of an enabler. ‘You really have to believe that you can influence and drive agendas. If you don’t have that commitment, then you will always be a follower.
‘To share an example, we were the first REIT in Singapore to achieve net carbon zero. The reason why we were able to do so was because I made a decision that we should go out and achieve it. Now, of course, every company has that same goal, but the problem is they may not be moving fast enough.
‘With sustainability, different departments are waiting to move together, so I told my head of sustainability: “Let me move forward first, and then the other business units can follow and use me as an example.” This mindset enabled us to achieve net carbon zero three years ahead of our 2025 target.’
Chow’s extensive knowledge has been recognised beyond the business. As well as helping LREIT to achieve numerous accolades (see box), he was named Best CEO (Platinum) at the Asia Pacific Best of the Breeds REITs & Real Estate Investment Awards for two consecutive years, and Executive of the Year (Commercial Real Estate Trust) at the SBR Management Excellence Awards 2023. He also represents mid-size S-REITs as a member of the executive committee of the REIT Association of Singapore and is co-chair of its sustainability taskforce.
The finance path
Like many accountancy-trained professionals, Chow first chose the path because of a love for numbers.
‘I believe in numbers and I like logic. That’s one of the reasons why I chose to pursue accountancy. As to why I chose ACCA, I think a key reason at the time was I needed a programme that would be flexible enough for me to pursue while holding onto two jobs. Expenses then were high as I needed to be able to afford a helper to look after my ailing dad.’
While doing ACCA, however, Chow also came to appreciate the practical nature of the qualification. ‘Many of the assignments were based on real-world problems, which I felt helped to strengthen my analytical capabilities and taught me to solve problems on my own. ACCA also imbued in me important core skills such as tax and consolidation, which has served me well even up to today whenever I need to analyse acquisitions.’
CV
2018
CEO of Lendlease Global Commercial REIT
2015
CFO of Keppel REIT Management
2012
CFO of SB REIT Management
2001
Series of management roles at Siemens Medical Instruments, Ascendas, Frasers Commercial Trust, Overseas Union Enterprise, and Invista Real Estate Investment Management
‘You don’t have to limit yourself to pure finance roles. CFO is not the only end-game’
Advice to aspirants
Looking back at his journey, Chow is thankful for the experiences that have shaped him and has some wisdom to share with up-and-coming professionals.
‘I feel that my accountancy training gave me the requisite skills to pursue everything I have aimed for throughout my career. It’s important to know that you don’t have to limit yourself to pure finance roles. CFO is not the only end-game.’
He says that accounting provides a lens through which to understand business, and opens the door to many different industries. ‘What is important next is to challenge yourself to think out of the box and step outside of your comfort zone. This attitude will enable you to gain a broader perspective by seeing things through the lens of others.
‘More than anything, though, you need to love what you do. Because only then will you be driven to improve yourself to do better and better.’
