Kenanga Research raised IJM Land Berhad's target price to RM2.75 from RM2.64 after it was reported that the company has formed a joint venture to develop a property site in London.

"We are positive on the venture as the group is now seeking new earnings growth avenues overseas given its already high earnings base in Malaysia," Kenanga said in a research note on Monday.

IJM Land said in a stock exchange filing that it formed a joint venture with Lite Bell Consolidated Sdn Bhd to buy a 2.7 acre site on Royal Mint Street in London for RM98.4 million.

There are no issues with the financing of the project and IJM Land's net gearing is set to rise only marginally, Kenanga said, adding that the project, due to be launched in the latter part of 2014, will start contributing to revenue from the financial year 2015 onwards. -- Reuters