Page 37 - Forbes - Asia (March 2020)

ter a few years, he was handed a crucial assignment. “I was
given the mission to start the business in mainland China
from scratch, so it was not easy,” says Peter. Martin followed
in 1993, first as his father’s personal assistant. Both of them
became vice chairmen, Peter in 1993 and Martin in 2005.
The two are in sync on strategy. “We both agreed that we
wanted to stay, both in China and Hong Kong, and contin-
ue to build on his [Lee Shau Kee’s] achievements,” says Pe- 35
ter. The pair say their father from childhood handed down
(to them) his “golden rules” for success. “He taught us you
have to have a firsthand understanding of the market be-
fore we make a decision,” says Peter. “We can rely on reading
Forbes—it might tell us which city [to invest in], but where
in the city? For that, we have to dive deep.” HENDERSON LAND
While Henderson Land is the flagship company behind
the family’s $30.4 billion fortune, the Lee family also con-
trols five other listed companies that span sectors such as
hotels, tourism and natural gas, as well as having numer-
ous private investments. Henderson has left an indelible
mark across Greater China’s urban landscapes. In Hong
Kong, it codeveloped Two International Finance Centre,
the city’s second-tallest skyscraper (the Lee family and
Henderson uses the 71st to 76th floors). It also developed
the World Financial Centre in Beijing and the Henderson
Metropolitan located on Shanghai’s prestigious Nanjing
road. In late February, the various listed companies con-
trolled by the family had a combined market capitalization
of over $50 billion.

P eter and Martin have a simple but elegant
division of responsibilities. As Peter created
the mainland China business, he continues
to run that. Martin, meanwhile, is respon-
From top: Murray Road project (artist rendering) in Hong Kong’s
sible for Hong Kong. Thus, the pair have Central district and World Financial Centre in Beijing.
divided their roles by geography, and have the final say in
their respective markets. “There’s no challenging each oth-
er’s decision,” says Peter.
As far as strategy goes, they won’t reinvent their father’s face masks to staff. To support tenants, Hender-
wheel. “We will continue to follow his management style, son will cut rents for many in the retail sector by
there’s no point to change it, it is working well,” says Pe- 20% to 60% in February to offset any lower rev-
ter. “But of course, as the world evolves, the business mod- enues. “Our father taught us that we have to not
el has to adapt.” One refinement, for example, is a rebal- just think about our interest but also think about
ancing by Martin of the portfolio in Hong Kong to focus on our partners’ interest,” says Martin.
more commercial projects—where Henderson has long de- Their father, they say, is unfazed—he’s lived
veloped residential ones. through plenty of ups and downs. “You see
The most immediate challenge is coping with current the turmoil in Hong Kong, everybody’s so up-
conditions of recession and protests in Hong Kong, and set, but he says ‘This is nothing. I was in the
the coronavirus across Greater China. The numbers tell war when the Japanese were occupying Hong
the story: Henderson Land’s first-half underlying profit,
Kong. This is nothing to worry about. Why are
COURTESY OF HENDERSON LAND (2) HK$6.7 billion ($860 million) for the first half ended in le. During the Asian financial crisis in 1998,
excluding revaluation gains on properties, dropped 52% to
you guys so worried?’” says Peter, with a chuck-
Lee’s net worth plunged $5 billion—the highest
June last year. Revenue from property sales tumbled 68%
loss in dollar terms for any Asian tycoon during
to HK$2.7 billion.
The brothers’ first priority is to keep their staff safe—
the crisis. Yet he declared in an interview with
Forbes at the time: “Hong Kong is still the best
both from protests and the virus. Martin says new safety
and security measures have been adopted to ensure busi-
place in the world to invest money. We are go-
ness continuity. Henderson Land has been distributing free

MAR CH 2020 ing full speed ahead.” F ORBES A SIA