Shares of hotel and property group Orchard Parade Holdings jumped as much as 17% to their highest level in more than four years, after the company said it will divest three of its hospitality assets into a trust.

By 9:19 a.m., Orchard Parade shares were 15.4% up at $1.875, and have surged about 46.5% since the start of the year.

DMG & Partners initiated coverage of Orchard Parade, the hospitality arm of property developer Far East Organisation, with a ‘buy’ rating and target price of $2.23.

“Spinning off its hospitality assets into a real estate investment trust will enable the group to monetise its hotels at a good valuation and create a platform for sustainable growth,” DMG said in a report.

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