CIMB Research raised its target price on Ho Bee Investment to $1.52 from $1.27 and kept its ‘neutral’ rating, to reflect cash proceeds from the sale of a hotel and lower cap rates for industrial assets.
Shares of Ho bee have jumped nearly 47% since the start of the year, compared to the FTSE ST Financial Index’s 27.8% gain.
Ho Bee said it will sell Hotel Windsor for $163 million, giving it a net gain of $25.9 million on completion, which will lift its restated net asset value by 3%, CIMB said in a note.
The brokerage noted that cash proceeds from the sale could be used for capital expenditures at the China projects and office development in Singapore, the Metropolis.
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