Product Highlights

• The Robertson comprises two residential towers sitting on a retail podium (we believe will be tenanted by a reputable local wholesale mall operator) along Jalan Pudu, KL, on the fringe of the Bukit Bintang shopping strip. It is also two blocks away from Bukit Bintang City Centre (BBCC) and within walking distance of the tourist-packed Jalan Alor hawker food street.

• The location is highly accessible by public transport. Both the Plaza Rakyat LRT station and Pudu Sentral (KL City’s main bus terminal) are just a block away.

• Sitting next to The Robertson is the site of the abandoned Plaza Rakyat project. According to news reports, the project is being revived by a consortium led by a Chinese developer.

Financing

• We understand that most buyers have been able to secure a margin of financing of 80-90%. We also understand that the developer is offering rebates for selected units.

Market Response

• The Robertson currently has a 90% take-up rate since its launch in January 2014.

• The developer has been able to gradually raise the selling price from an early bird offer of about RM1,300 psf in 2014 to above RM1,500 psf at present, in line with the going rates in the area that have trended up in recent years.

The Big Picture

• The Robertson’s good response indicates that there could be still pockets of strength in the hardest hit, high-end, high rise residential segment.

• We believe The Robertson's key selling points are: (1) its reasonable pricing – at a 5-10% discount to a similar product in BBCC; (2) it fills the demand gap for contemporary-designed residential units with amenities in one of the older parts of KL City (buyers are willing to trade a posh neighbourhood for the convenience the location offers); and (3) its strong prospects for future capital appreciation, arising from the rejuvenation of the Jalan Pudu area backed by new developments such as BBCC and the revival of the Plaza Rakyat project.

Source: AmInvest Research - 21 Nov 2017