CSR in family business's DNA

SUPPORT for heritage and the arts may be regarded as the softer, ancillary side of a real estate business, typically labelled as corporate social responsibility (CSR). But for Rachel and Claire Teo, third-generation scions of the Daniel Teo group of companies, they are woven into the ethos of the 50-plus year old family business where service to the community takes precedence over self.

In addition to their roles in the business - Rachel is director and Claire is business development manager - the siblings actively maintain and enlarge the group's community outreach through avenues such as The Private Museum. Their parents are renowned in Singapore in the fields of real estate and the arts.

Their father Daniel Teo is chairman and managing director of the Hong How Group, which has built a reputation in heritage properties. He is an advocate of active ageing, philanthropist and an avid art collector, among others. Dankhim Investment is the family's investment holding company and family office.

Their mother is Goh Soo Khim, founding director/principal of Singapore Ballet Academy and founding director of Singapore Dance Theatre. Rachel, who joined the business in the 1990s, says the key to the group's longevity lies in communication and the ability to find roles for the younger generation of family members.

''The Tong Eng Group was started by my grandfather and his brother, both immigrants from China. Until today, it is still actively managed by the elder generation with the third generation learning the ropes. I think the key to a business surviving is communication, understanding and compromise.''

The Hong How Group has its roots in the Tong Eng Group, founded in the 1950s by brothers Teo Thye Chor and Teo Thye Hong who began trading in general hardware and electrolytic tinplates for steel cans and bottle caps. As Singapore was on the cusp of urbanisation, the opportunities in real estate beckoned and the brothers began to acquire suburban and even rural land to build a sizable landbank. Within 60 years, based on a profile in the Business Families Institute's book, The 4Gs of Business Families, the Tong Eng Group had amassed over 278,000 sq m of land.

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In the 1970s, as the second generation joined the business, the group allowed for spinoffs and Hong How was formed. Daniel Teo's father was Teo Thye Hong. In the 1980s, Hong How sold its tinplate and related hardware business to focus on property development. Since then Hong How has built a reputation in shophouse conservation and design-led residential and mixed developments.

RACHEL, a qualified accountant, joined the business after two years as an auditor for PwC. In her younger years, she was now and again reminded by her mother and grandfather that she had to help her father in the business. ''Being an auditor was very insightful as I got to see many companies. When I first came to the family business, I realised how flexible everything was... I didn't quite think about what joining meant but I quickly realised the heavy responsibility I had taken up.''

Claire joined in 2019 after a career in financial institutions working in a number of functions including human resource management and marketing. Her decision to join was ''serendipitous''.

''I wanted to take a break and I was expecting my third child... The family business was an opportunity to learn something new and more importantly, I could give my time to contribute to the family which is more meaningful.''

The sisters look to family for their role models. Claire cites her mother Goh for her values of humility and frugality. ''She would never spoil us with toys or expensive items. She instilled in us the values of hard work, resilience, humility and kindness. She also led by example as she hardly spent money on luxury items when we were growing up...

''She started out with the dream of a dance company, setting up with seven dancers to what it is today. It's quite amazing. Anything is possible; you just have to work for it.''

Rachel says her grandfather believed in the power of education and urged them to study hard. Her parents also espoused the value of giving back to the community. ''One of the things my mother always said was to think about the community before self. That was ingrained in us from young.''

Among the community initiatives that the family has undertaken, The Private Museum is close to their hearts. The non-profit was founded in 2010 by Daniel and Rachel as an avenue to share the love of art, nurture art appreciation and to bridge the gap between the public and private art spheres. ''My parents are art collectors, and sharing the pieces with other like-minded people is something they love to do, as well as to encourage other collectors to come forward and do the same.''

RACHEL herself has undertaken to support the Teng Ensemble, backed by non-profit The Teng Company which sets out to ''reimagine the possibilities'' of music derived from the Singapore Chinese heritage. In addition to concerts, The Teng Company also initiated in-school programmes and gives performances for homes and hospices. In 2020, it collaborated with Indian musician Shabir in response to Covid-19.

The issue of ageing, however, is one that inspires a degree of passion. Daniel has actively explored ''semi-luxurious'' senior housing development for Singapore with management and concierge services. So far, this ambition is yet to come to fruition because of costs.

''Retirement housing is my father's pet project. When I first joined in the 1990s, I thought retirement seemed a far-off concept. But within 10 years I began to realise he was onto something. There really is a need for alternative housing for retirees. The government has been pushing many initiatives, but I feel there is still a missing element which is the private sector,'' says Rachel.

The quest for a feasible project is a ''continuous work-in-progress'', she says. ''We're still trying to work with people and landowners, to see whether we could do a joint venture for a retirement village.''

She remains active in support of ageing issues. Her current projects include Aspire55, described as a ''virtual retirement village'', or a well-being community with a combination of social, health and care services for members.

RACHEL has also co-founded Fraxtor, a real estate investment platform that harnesses blockchain to tokenise the assets, making them more accessible in terms of capital outlay. Her partner, Oliver Siah, is co-founder and group managing director. Fraxtor's website lists 9 projects, including 21 Mount Rosie, a bungalow to be redeveloped into multiple detached, semi-detached and terrace houses. The Mount Rosie opportunity was understood to have been snapped up within 90 minutes. Fraxtor's projects include a fund that aims to redevelop long-term care homes in Canada.

Meanwhile, the family is in the midst of drafting a family constitution to define and crystallise the family values and legacy, and to spell out policies around issues such as employment in the group and ownership. The family legacy is spelt out in Chinese as Tong Rong, or ''together we prosper''. ''This forms the basis of how we invest, what we invest in and how we share our time together. Sharing, preservation and sustainability have always been in the family DNA and business dealings. It is how our parents have always conducted their businesses,'' says Rachel.