GEORGE TOWN: Iconic Worldwide Bhd has secured projected rental revenue of more than RM75 million following the signing of a long-term tenancy agreement for a factory in Batu Kawan owned by its subsidiary, Iconic Medicare Sdn Bhd, strengthening its recurring income base.
In a statement today, the group said Iconic Medicare has entered into a tenancy agreement with optical module contract manufacturer Aperion Technologies (Malaysia) Sdn Bhd to rent the factory for a minimum period of six years, with options to renew for a further four years.
Under the agreement, Iconic Worldwide expects to generate rental revenue of RM75.6 million over the initial six-year lease period, rising to as much as RM133.68 million if the tenant exercises the full renewal option.
Aperion is an established contract manufacturing partner for optical modules, providing high-speed, artificial intelligence (AI)-optimised and cost-efficient production solutions to global optical module brands, cloud service providers and telecommunications equipment vendors.
The factory is located in the Batu Kawan Industrial Park, a major industrial hub for the semiconductor and electrical and electronics (E&E) industries, and was originally developed for glove manufacturing before operations ceased in 2025.
Following the cessation, Iconic Worldwide opted to lease out the facility as part of its strategy to unlock value from existing assets and create additional recurring income streams for the group.
Iconic Worldwide executive chairman Datuk Seri Tan Kean Tet said the agreement marked a positive milestone for the group and is expected to diversify its revenue base while providing stable, recurring rental income that will contribute positively to profitability.
“With the signing of this agreement, we continue to make progress towards improving our financial performance and delivering strong returns to our shareholders,” he added.
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