Not only did Maxshangkar venture into the Malaysian property market; he daringly cast his investment net further abroad and put down money in regions where few investors had even considered venturing.
Among the projects MCM handles today are projects in Malaysia, Hong Kong, Germany, the UK, US, Australia, New Zealand, Indonesia, China, Russia, Dubai and India. He readily admits that the risks are enormous, but so are the returns. As a global investment holding and projects management consultant firm, MCM is currently managing projects valued at about USD10 billion since 2012 but Maxshangkar’s aim is to grow it to ten times its current size. That means a major juggling act, since each country requires a different strategy.
“Sometimes a project in a certain country doesn’t need development – it needs renovation or refurbishment, as in the case of our property redevelopment projects in New Zealand,” - he clarified.
“After the earthquake a few years ago, we found that it would be more viable to refurbish and redevelop, rather than develop from scratch.”
In the case of the UK, he has turned his hand to investing car park facilities; while in Russia, the strategy has been to set up a commodity business and consultation services.
Never miserly about providing insights into the markets where he has done extensive research, he readily discusses regions like the US and Germany - areas where most investors are wary of treading. Unlike the US, where the sub-prime problem could be turned into a golden opportunity, some areas in the Germany environment offered run-down, dilapidated buildings that could be purchased at reasonable prices and remodeled as trendy, upmarket accommodation or office space, which could command significantly higher returns. Additionally, there could be government incentives offered for the
re-purposing of some of the heritage buildings, many of which may be sited in what are
now prime commercial areas, provided someone would undertake their redevelopment.
MCM’s projects also includes developments in Hong Kong, probably one of the most difficult markets in the world. Population density, land scarcity and off-the-charts growth make it an extremely complex one, but MCM has managed to gain a foothold with a strategy of land bank acquisition, ie, acquiring small tracts of land with an eye to future development, taking into consideration the political, social, environmental and cultural realities of Hong Kong.
But how do projects on other continents compare to what MCM is doing in Malaysia?
Despite having already established viable businesses in more than ten countries, and being able to show healthy profits in most of them, Maxshangkar is still bullish about the place he calls home.
He believes there are many areas where both local and foreign investors can invest their funds for very healthy returns on investment.
“We tend to believe that we need a lot of money to invest, but it’s not always true,” - he opines.
“But it can be done. You have to be able to make different kinds of investment, like investing time in doing proper research, and learning about markets, that will help you make well-informed decisions and taking calculated risk. Be consistent. Your attitude towards small things should be the same as your attitude towards big ones.”
Acknowledging that he was driven by the desire to make it on his own and not work for others, his advice to budding entrepreneurs is:
“If you are avalanched by adversity, hold on. Don’t give up; rebuild. Make decisions and stick to them.”
Great things never come from comfort zones.
To be continued… Don’t let the property bubbles burn your hands…
