LSH Capital plans to transform 10-acre KL Tower area into a tourism, retail and cultural destination

Mar 26, 2025

LSH Capital has signed a 20-year lease agreement with the government to operate and maintain the Kuala Lumpur Tower and its surrounding areas.

KUALA LUMPUR (March 26): Property developer and construction firm Lim Seong Hai Capital Bhd (LSH Capital) (KL:LSH) on Wednesday said it plans to rejuvenate the 10-acre area around Kuala Lumpur Tower into an integrated destination for tourism, retail and cultural engagement.

LSH Capital has signed a 20-year lease agreement with the government to operate and maintain the Kuala Lumpur Tower and its surrounding areas.

The lease agreement, which takes effect from April 1, 2025, to March 31, 2045, entitles LSH Capital to capitalise on a total land area of about 10.08 acres, which includes the land on which Kuala Lumpur Tower, along with the Tower Terrace, is erected, as well as the surrounding lands.

This includes areas facing the Bukit Nanas Forest Reserve and those with frontage on Jalan Raja Chulan and Jalan P Ramlee.

“We are deeply honoured to be entrusted with this national asset,” LSH Capital non-executive chairman Tan Sri Lim Keng Cheng (pictured) said in a statement. “This lease signing marks the beginning of an ambitious chapter — one where Kuala Lumpur Tower and its surrounding lands will be reimagined into a world-class destination that celebrates both innovation and heritage.”

The concession was awarded to LSH Service Master Sdn Bhd (LSHSM), which is a 70:30 joint venture between LSH Capital’s wholly owned subsidiary LSH BEST Builders Sdn Bhd and Service Master (M) Sdn Bhd (SMMSB).

SMMSB is a privately held Bumiputera company, specialising in mechanical and electrical (M&E) works and providing building maintenance services.

The job marks LSH Capital’s first foray into facility management services, a segment it aims to expand to build a stable base of long-term recurring income.

“LSH Capital is committed to expanding this new business segment to create sustainable growth while providing high-quality, integrated services that contribute to Malaysia’s infrastructure development,” it added.

KL Tower, a government-owned asset, has been under scrutiny since 2022, when the Malaysian Anti-Corruption Commission (MACC) launched an investigation into alleged irregularities surrounding its ownership transfer from Telekom Malaysia Bhd (KL:TM) to a lesser-known firm.

Previously, KL Tower was managed by Menara Kuala Lumpur Sdn Bhd, a subsidiary of TM. However, in October 2021, TM decided not to renew the concession, citing the tower’s shift from telecommunications services to a tourism and hospitality-focused operation.

As at 3.57pm on Wednesday, shares of LSH, which are currently traded on the ACE Market, were up five sen or 6.1%, at 87 sen with a market capitalisation of RM729.4 million.

Want to have a more personalised and easier house hunting experience? Get the EdgeProp Malaysia App now.

Source: EdgeProp.my