Iconic Worldwide Bhd has strengthened its recurring income profile after securing a long-term tenancy for an industrial facility in Batu Kawan, generating more than RM75 million in projected rental revenue over the initial lease period.
The agreement was signed through its subsidiary, Iconic Medicare Sdn Bhd, with optical module contract manufacturer Aperion Technologies (Malaysia) Sdn Bhd. Under the tenancy terms, the factory will be leased for a minimum of six years, with options for the tenant to extend the agreement for an additional four years.
Based on the agreed rental structure, Iconic Worldwide expects to earn approximately RM75.6 million in rental income over the initial six-year tenure. Should the renewal options be fully exercised, total rental receipts could increase to as much as RM133.7 million, providing long-term visibility and stability to the group’s earnings.
The factory is located within the Batu Kawan Industrial Park, a key industrial hub supporting the semiconductor and electrical and electronics supply chain. Originally developed for glove manufacturing, the facility became available after operations ceased in 2025. Rather than leaving the asset idle, the group repositioned it as a leased industrial property to unlock value and generate sustainable cash flow.
Aperion Technologies is an established optical module contract manufacturer, serving global brands, cloud service providers, and telecommunications equipment companies. Its focus on high-speed and artificial intelligence-optimised production aligns well with the growing demand for advanced manufacturing space across Malaysia’s industrial corridors.
The move reflects a broader strategy increasingly adopted by industrial property owners, similar to trends seen in factory developments in Puchong and industrial property in the Subang area, where long-term leasing to technology-driven tenants helps stabilise income and reduce cyclical risks.
Iconic Worldwide’s executive chairman noted that the tenancy marks a significant milestone for the group, enhancing income diversification while providing predictable, recurring rental returns. The strategy mirrors how well-located industrial land in Selangor and strategically positioned commercial property in KL are being leveraged to strengthen balance sheets amid changing market conditions.
For investors and occupiers alike, the transaction highlights continued demand for quality industrial space, even as companies prioritise flexibility, connectivity, and cost efficiency. These same fundamentals are increasingly influencing tenant decisions for office space in Bukit Jalil and other established employment hubs across the Klang Valley.
Overall, the agreement positions Iconic Worldwide to improve earnings resilience while demonstrating how asset optimisation can create long-term value in Malaysia’s evolving industrial real estate landscape.
