Iconic Worldwide unit inks tenancy deal for Penang property

KUALA LUMPUR: Iconic Worldwide Bhd said its wholly-owned subsidiary Iconic Medicare Sdn Bhd has rented out a building and the land it is built on in South Seberang Perai, Pulau Pinang, to optical modules contract manufacturer Aperion Technologies (Malaysia) Sdn Bhd.

In a bourse filing, the group said the rental is RM840,000 a month, which is equivalent to RM3.50psf on the current lettable area of about 245,000 sq ft.

Iconic Medicare, at the tenant's request, will construct at its own expense an additional floor space of about 40,000 sq ft and install a lift to the property. Subsequently, the monthly rental shall be increased to RM1mil due to the expanded net lettable area.

The lease shall be for a duration of three years, followed by an automatic renewal of three years with the monthly rental being revised to RM1.1mil. There will also be an option to renew for a further three years with the rental rising to RM1.2mil a month.

"The agreement is expected to provide a positive and consistent new source of revenue and cash

flow to Iconic Medicare for the entire course of the Agreement and this will in return provide a positive impact on the financial results and will be in the best interest of the IWB Group," said the group.