36
FORBES ASIA MARCH 2020COVER STORYn that spirit, the brothers are pushing ahead
with projects. A showcase among them is
at the site of a former car park on Murray
Road in central Hong Kong. The Lees beat
out eight other bidders to pay $3 billion for
the site in 2017, reportedly setting a record at the time for
the world’s most expensive commercial transaction per
square foot.
The reason for the high price was simple—the last ma-
jor transaction in the area is said to have happened 24
years ago. Situated between the Bank of China Tower and
Li Ka-shing’s Hutchison House (itself undergoing a report-
ed $4 billion renovation), it is a prime location. “We have a
chance to create something very special that can be an icon
for Hong Kong,” says Martin. “We spent months with the
architect to come up with its stunning and unconvention-
al architecture.”The 34-story tower there, as yet unnamed,
promises to have a unique design featuring large,
custom-made curved windows and a banquet
hall on the top for up to 500 guests. Scheduled to
open in 2023, it was designed by the renowned
Zaha Hadid Architects to resemble the bud of
Hong Kong’s official symbol, the bauhinia flower.
The total cost of the building, exclusive the cost
of the land, could run to about $400 million.
Meanwhile, Peter has been active in mainland
China. Henderson Land now has about 6.4 mil-
lion square feet of completed investment prop-
erties there, with the bulk in three cities: Bei-
jing, Guangzhou and Shanghai. Unlike Hong
Kong, which has a more residential focus, the
footprint in China is mostly in office and retail
spaces. He is now working on two huge devel-
opments, both branded Lumina, in Guangzhou
and Shanghai.
Another promising opportunity the broth-
ers are pursuing is the ongoing transformation
of their natural gas business, the Hong Kong-
based utility firm, Hong Kong and China Gas,
known as Towngas. Established in 1862, it was
Hong Kong’s first public utility, supplying gas
burned in old-fashioned streetlamps. Today the
company’s core business remains gas supply,
for cooking and heating, but also has moved
into other sectors, such as water and waste
treatment, telecom, engineering and clean en-
ergy technologies.
When Lee senior took over the business in
1983, he expanded it from Hong Kong to sup-
ply gas to over 130 cities in mainland China.
The pair now aim to transform Towngas into a
“smart energy” provider by adopting new tech-
nologies such as AI. The Lee family has also
been investing in tech-related projects in Chi-
na, Germany, Israel, Japan and the U.S. in re-
cent years.
Peter and Martin say they see more opportuni-
ties than they can pursue together. “We wish we
had more brothers to cover more markets,” jokes
Peter. “We are already working really hard.”LEE SHAU KEE: MARTIN SCHOELLER FOR FORBESI
Family TreeUNCLE FOUR
The elder Lee is known
as “Uncle Four” for being
the fourth-born child in a
small-time merchant fam-
ily from Shun Tak in Guang-
dong province. His father’s
business was an exchange
for gold, silver and cur-
rencies. He recounted
that they were so poor at
times that they could only
afford to eat fish or meat
twice a month. Lee was 20
years old when he moved
to Hong Kong in 1948 with
HK$1,000 and initially set
up his own venture to trade
in precious metals and currencies.
Recognizing that Hong Kong would face a chronic
shortage in housing, he shifted to real estate and in 1963
cofounded Sun Hung Kai Properties with Fung King Hey and
Kwok Tak Seng, the father of Hong Kong’s billionaire Kwok
brothers. The trio were dubbed the “Three Musketeers.”
When that partnership ended, Lee went out on his own,
starting Henderson Land in 1976 and going public on the
Hong Kong stock exchange in 1981.
Lee’s focus on residential and land banking has long been
his hallmark. His first mention on the Forbes’ Billionaires
list, at $1.5 billion in 1991, notes that what Lee “knows best”
is “building for Hong Kong’s mass residential market.” The
landbank he first started building in the 1950s gave him the
supply he needed to become a frenzy of activity with Hen-
derson—which built and sold 50,000 units over an 18-year
period. Today Henderson is the largest owner of undevel-
oped rural land in Hong Kong’s New Territories, with roughly
46 million square feet. In February, Lee held the No. 1 posi-
tion on Hong Kong’s 50 richest list, edging out his longtime
rival Li Ka-shing for the top spot.The pair have divided
their roles by geography,
and have the final say in
their respective markets.
Lee Shau Kee