What Investors Should Know About Rowsley Limited’s Change In Business Focus

Back in October 2013, The Straits Times reported that Rowsley Limited (SGX: A50) was involved in a S$5.5 billion real estate development project in Iskandar Malaysia called Vantage Bay.

Malaysian troubles and a change in focus

Vantage Bay, a 9-hectare plot of land, had the advantage of being located just a 5 minutes’ drive away from the Causeway immigration checkpoint that separates Singapore and Malaysia. Rowsley’s initial plan for Vantage Bay was to develop a mixed-use township with residences, retail malls, hotels, and more.

But the company eventually had a change of plans. In its latest 2015 annual report, Rowsley revealed that it had “revamped” its business plans for Vantage Bay.

The area is now being repositioned as a healthcare project. The company had signed on Thomson Medical, a private healthcare services provider, as a “strategic partner.” Meanwhile, in 2015, Rowsley had also invested in the real estate and hospitality sectors in Manchester, UK, and the building design sector in India.

A Foolish conclusion

These moves are a sign that Rowsley has changed its business focus. Given that these changes would bring about a different set of business opportunities, it’d be interesting to see how Rowsley performs in 2016 and beyond. The company had a year to forget in 2015. Revenue was down by 4.8% to S$83 million and it actually clocked a loss of S$36 million, down from the profit of S$49 million seen in the previous year.

At its current share price, Rowsley is priced at 1.2 times its latest book value.

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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 Ong Kai Kiat does not own shares in any companies mentioned.