This article first appeared in City & Country, The Edge Malaysia Weekly on February 3, 2025 - February 9, 2025

Tan Sri Lim Kim Hong, founder and non-executive chairman of I-Bhd (KL:IBHD), is confident about delivering even stronger financial results for 4QFY2024 and FY2025. His optimism follows a 2.7-fold year-on-year (y-o-y) increase in profit before tax (PBT) to RM27 million for the first nine months of FY2024 (9MFY2024) ended September 2024, driven mainly by strong performances in the company’s leisure, hospitality and property segments, as well as Lim’s business expansion strategy of venturing into the rapidly growing “playcation” market in Malaysian prime locations, including the Kuala Lumpur city centre.

To recap, the leisure and hospitality division of I-Bhd was the largest contributor to its 9MFY2024 financial growth, delivering RM14.6 million in PBT, a jump from RM1.8 million in 9MFY2023. These numbers highlight the success of integrating experiential offerings into real estate developments as a means of extracting incremental value from land.

“For developers, the real challenge today is staying relevant. At I-Bhd, we have shown that by creating destinations where people want to gather and spend time, we can extract long-term value from our land. This is not about shifting focus — it’s about making our land work harder for us in a way that benefits both the business and the communities we serve,” Lim tells City & Country in an exclusive interview at Wyndham Suites KLCC recently.

Formerly known as 8 Kia Peng, Wyndham Suites KLCC is another example of how I-Bhd is extracting value from its current assets. “8 Kia Peng was planned, developed and completed as a luxury serviced apartment development on Jalan Changkat Kia Peng, the heart of KLCC, with a stunning city skyline view and existing amenities in the vicinity. The project was completed and handed over in 2020.”

Officially launched in 2016, the 1.05-acre development has a gross development value of RM820 million. The single-block, 50-storey building has a total of 442 units that have built-ups ranging from 718 to 1,738 sq ft and at least two bedrooms. The units were priced at RM2,300 psf.

“As the premium, luxury property market has been soft in the last few years, we have some unsold units at 8 Kia Peng. Unlike other developers, we did not hurry to clear [unsold units] at an undervalued market price just to close this chapter and move on. We do what we do best — turning projects into a unique destination to unlock and unleash their potential and, even better, generating recurrent income for the group,” Lim says.

In 2023, I-Bhd announced a partnership with global hotel group Wyndham Hotels & Resorts to transform 8 Kia Peng into service suites called Wyndham Suites KLCC, which would include an integrated 24,500 sq ft active play space called WynSports, said to be the largest in the KLCC area.

“Facilities like WynSports appeal not only to in-house guests but also to walk-in visitors — families seeking high-quality recreational options in the city. These walk-ins represent a crucial demographic for urban hotels, as they provide an opportunity to expand beyond traditional marketing channels and directly showcase the property’s amenities and brand values,” Lim explains.

WynSports is also the first Playcation property in Wyndham’s global network, focusing on families and capturing the rising market demand in the KLCC area. It was officially opened to the public on Dec 19, 2024. Highlights include climbing zones, adventure slides, interactive net challenges and spacious play areas for children.

“In a competitive landscape, there is a need to think beyond transactional stays and consider how to engage with local and regional communities. WynSports allows us to attract families who may not yet be familiar with our suites or services, creating opportunities for them to experience the quality of our brand first-hand,” Lim says.

Lim says market response to the opening of Wynsports has been overwhelming, and the indoor play space received a few hundred visitors on the opening weekend.

“It has been proven that the demand for such a family-friendly destination is very strong in the KLCC area.

“Wyndham was also impressed with the result. They are very happy because it is foreseeable that it will have a positive impact on Wyndham Suites KLCC’s occupancy and room rates in the long run,” Lim says.

The success of Wynsports contributed to the second partnership between I-Bhd and Wyndham Hotels & Resorts, with an agreement signed last year-end to establish Wyndham Garden at i-City, the flagship development by I-Bhd in Shah Alam, Selangor.

“We will refurbish and rename Best Western Hotel in i-City as Wyndham Garden. There will be a play space like Wynsports there. The refurbishment works started in December 2024 and are slated for completion this year, just in time for Visit Malaysia 2026,” says Lim.

Meanwhile, I-Bhd continues to add value to Wyndham Suites KLCC, having kicked off the second phase of facilities enhancement in the development.

“In fact, the clearing works [for phase two] began in December. We are turning two penthouse units on Level 48 into a space that is well equipped with the latest interactive lightings and VR (virtual reality) technology, poised to be the next most Instagrammable destination in town, creating a place-to-go for teenagers and young adults,” he says.

The two penthouses will have a combined space of 2,450 sq ft, which will be turned into WynSnow, a -8 degree Celsius attraction that allows visitors to experience real snow in KLCC, along with other immersive experiences, as well as a space for a corporate or launch event. All of this will be open to the public this year.

Following the launch of WynSnow, the company will convert the carpark space on Level 7 into a WynMR, an attraction designed for youths and adults that will span 2,450 sq ft and use mixed-reality technology.

Declining to disclose the total investment for these enhancement works, Lim says it is a “big budget” investment for both Wyndham Suites KLCC and Wyndham Garden at i-City. “Let’s put it this way: We will need to have a combined daily visitor count of at least 1,000 from two locations, or a RM1 million monthly income, to break even. While the upfront investment has always been painful, it will create a sustainable income source for the group.

“Through the years, I-Bhd has built a very strong in-house team run this business model. Our strength is not in accumulating land bank to build, sell and move on. We are focusing on extracting value from our current land bank and assets by using the bundling and market targeting strategies. i-City is a good example,” says Lim.

On Jan 16, I-Bhd officially launched Sky i-City, the latest attraction in Shah Alam. It comprises a 600m-long glass slide and a distinctive 60m LED-lit tower. Designed to elevate the site’s appeal, Sky i-City is set to attract a new wave of visitors while reinforcing i-City’s position as a regional hub for entertainment and recreation.

“Real estate is no longer just about buildings. It is about creating places that people want to visit, live in and return to. When we build vibrant destinations that serve multiple purposes, we unlock sustainable value from the land and ensure our assets remain productive over the long term,” Lim says. “It is why property prices and rental rates in i-City have always been on an upward trend despite the overall soft market. Footfall from these attractions drives vibrancy and visibility, ensuring properties here remain active and profitable even during challenging market conditions.”

Launched in 2005, i-City is a 72-acre development founded on the virtue of IT. I-Bhd’s vision was to transform this area of Shah Alam into a futuristic hub — an international capital city that showcases Malaysia’s technological advancement. Today, i-City features a diverse array of assets, including RM10 billion worth of freehold developments, the 1.5 million sq ft Central i-City Shopping Centre, 24 acres of tourist attractions, the five-star Hilton DoubleTree Hotel, Grade-A offices, a data centre and a medical centre.

With about 70% of i-City deve­loped, most of the remaining land bank, which has an estimated gross development value of RM5 billion, has been reserved for premium residential and commercial projects. Lim says, however, that new projects will be launched when the right partners come along.

“Our focus is on the leisure and hospitality sectors, along with continued investment in technology and AI. These efforts are integral to further enhancing i-City’s smart city positioning, which will not only benefit the development itself but also elevate property values in the surrounding areas,” he says.

By reimagining land as dynamic spaces that blend utility, recreation and connectivity, I-Bhd is contributing to the evolution of urban developments in a rapidly changing landscape.

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