Singapore’s Big Loser for the Week: Ryobi Kiso Holdings Ltd

Credit: hobvias sudoneighm

From last Friday to this Thursday, Ryobi Kiso Holdings Ltd (SGX: J8O) has seen its shares falling by some 3% to close at S$0.102.

Since the local share market, as represented by the Straits Times Index (SGX: ^STI), had moved in the opposite direction, Ryobi Kiso has been a loser for the week.

On Monday, the firm said that it is buying a plot of land in Leeds, United Kingdom, together with three other firms, namely, Heeton Holdings Limited  (SGX: 5DP)KSH Holdings Limited  (SGX: ER0), and Lian Beng Group Ltd (SGX: L03).

The site, which is around 106,722 square feet in size, is located near Leeds City Centre. The four companies are now doing studies on the site before finalising the development plans. The development, which will be launched in phases, can hold more than 1 million square feet of mixed-use space. The acquisition price was not stated.

Leeds and its greater region together form the largest city outside of London, the capital of the United Kingdom. It has a population of more than 3 million and a workforce of 1.9 million. The United Kingdom’s government has already started implementing strategic economic plans in the area to achieve S$26 billion of additional economic output and 112,000 extra jobs by 2021.

Investments in the city have also been sparked off after a new rail service, High Speed Train 2, was announced. Once it takes off, travel time between London and Leeds will drop significantly. This has also “reinforced Leeds as a highly strategic commercial and cosmopolitan city in the north of the UK,” according to Ryobi Kiso’s press release for the land acquisition.

Mr Ong Tiong Siew, the chief executive and executive director of Ryobi Kiso, had commented on the project:

“This is a great opportunity for us to build up a diversified property development portfolio, especially in a good market like UK. Having an experienced group of partners will help to fast-track us in building our capabilities as a property developer and Ryobi Kiso is looking forward to participate in more projects with our partners.”

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.