Ho Bee Land’s investments totalling about $250 million – made in the past six months – have prompted CGS-CIMB Research to raise its target price for the property developer to $2.70 from $2.56 previously.

The brokerage has maintained its “add” rating for the stock.

“We continue to like Ho Bee for its strong recurring income profile, derived from rentals in Singapore and UK,” CGS-CIMB analyst Lock Mun Yee writes in a note dated Sept 11.

In March, the company won a land tender at Biopolis P6 at one-north for $223.6 million.

The mixed-use bio-medical sciences (BMS) development, which is expected to complete by the end of 2022, will see the construction of a business park, office and retail space.

CGS-CIMB has estimated a gross development value of $400 million to $450 million for the property and a net yield on cost of 5% to 6% on completion.

In June, Ho Bee Land acquired two residential land parcels in Queensland for A$23.5 million ($23.4 million).

These acquisitions can yield a total of 665 land lots and will enable the company to replenish its development landbank in Australia and extend forward development income visibility, says CGS-CIMB.

As at 11.42 am, Ho Bee Land was up 1 cent or 0.5% at $2.20 with 47,700 shares changed hands.