LSH Capital to Transform KL Tower Precinct into Iconic Tourism & Cultural Destination
Property developer and construction firm Lim Seong Hai Capital Bhd (LSH Capital) is embarking on an ambitious journey to revitalise the iconic Kuala Lumpur Tower (KL Tower) and its surrounding 10-acre site into an integrated tourism, retail, and cultural landmark.
On March 27, 2025, LSH Capital announced that it had entered into a 20-year lease agreement with the Malaysian government to operate and maintain the KL Tower and its adjacent areas. The lease commences on April 1, 2025, and extends until March 31, 2045.
A New Vision for KL Tower
LSH Capital envisions turning the KL Tower precinct into a world-class destination, blending Malaysia’s rich heritage with innovative attractions. The leased area spans approximately 10.08 acres, including the tower base, Tower Terrace, and surrounding lands facing Bukit Nanas Forest Reserve, Jalan Raja Chulan, and Jalan P Ramlee.
“This lease signing marks the beginning of an ambitious chapter — one where KL Tower and its surrounding lands will be reimagined into a world-class destination that celebrates both innovation and heritage,” said Tan Sri Lim Keng Cheng, LSH Capital’s Non-Executive Chairman.
Strategic Partnership with Service Master
The lease and transformation project will be executed by LSH Service Master Sdn Bhd (LSHSM) — a 70:30 joint venture between LSH BEST Builders Sdn Bhd (a wholly owned subsidiary of LSH Capital) and Service Master (M) Sdn Bhd (SMMSB). SMMSB is a Bumiputera-owned company with expertise in mechanical & electrical (M&E) works and building maintenance.
This venture also marks LSH Capital’s entry into facility management services, part of a long-term strategy to build recurring income streams and diversify beyond property development and construction.
“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,” the company said in its statement.
From Telecommunications to Tourism
KL Tower, once managed by Menara Kuala Lumpur Sdn Bhd, a Telekom Malaysia subsidiary, has undergone a significant repositioning over the past few years. In October 2021, TM opted not to renew the concession, citing a change in the tower’s business focus — from telecommunications infrastructure to tourism and hospitality.
This change came under scrutiny in 2022 when the Malaysian Anti-Corruption Commission (MACC) investigated the asset’s ownership transition. With the new lease agreement, LSH Capital has now been entrusted with breathing new life into one of Malaysia’s most recognisable landmarks.
What’s Next for the KL Tower Precinct?
While detailed plans have yet to be revealed, the redevelopment is expected to include:
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Tourism attractions with panoramic city views
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Retail spaces offering local brands, souvenirs, and dining
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Cultural installations and experiential events
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Integration with Bukit Nanas Forest Reserve for eco-tourism appeal
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Enhanced accessibility and modern infrastructure upgrades
This integrated revitalisation aligns with Kuala Lumpur’s broader vision to strengthen its global position as a leading city for tourism, heritage, and urban innovation.
Positive Market Reaction
Following the announcement, LSH Capital’s share price climbed 6.1% to 87 sen as of 3.57pm on Wednesday, reflecting investor optimism. The company’s market capitalisation now stands at approximately RM729.4 million.
