GEORGE TOWN: Iconic Worldwide Bhd
aims to return to the black in its financial year 2025 (FY25), helped by its upcoming RM300mil gross development value (GDV) Iconic Harmony development.
The affordable project in Alma, Bukit Mertajam in Penang, will play a pivotal role in getting the group back to the black, group managing director James Tan told StarBiz.
“We expect strong sales as the enquiries have been overwhelming. Iconic Harmony comprises 751 affordable apartments with a 900 sq ft built-up area and 16 double-storey shop lots,” Tan said.
According to Tan, the group will also manage the Iconic Regency in Sungai Nibong, further expanding the group’s hospitality segment in the second half of 2024.
“The Iconic Regency comprises 268 serviced apartments ranging from 500 sq ft to 850 sq ft.
“Given the steady yearly growth of tourist arrivals, Iconic Regency should provide a reliable recurring income stream to the group,” Tan said.
Iconic Regency is next to the five-star RM180mil Iconic Marjorie, a Tribute Portfolio hotel, one of Marriot International’s brands, which is scheduled to open in the fourth quarter of this year.
Iconic Development Sdn Bhd, a private company, developed the hotel.
Tan added the group aims to get its hospitality and property development businesses to generate 70% of its revenue. “We hope to achieve this goal by FY25,” he said.
The group also manages the Iconic Hotel, a 198-room, four-star business-class hotel in Juru, Penang.
According to Tan, the group’s manufacturing segment will continue to be the revenue-driving factor for the current FY24 despite the challenging environment.
“We plan to expand the range of baby diaper products under the manufacturing segment, which has received positive feedback and demand since the launching of the products at the end of 2023.
“We aim for the manufacturing arm to generate 30% of our revenue by FY25,” Tan added.
Iconic Worldwide is completing a corporate exercise to raise between RM60mil and RM95mil through a rights issue with the proceeds meant for the purchase of land, working capital and bank repayment purposes.
The group will submit a development plan for its newly acquired 15 acres of land in Paya Terubong, which will further grow the property development portfolio.
“We are studying opportunities available under the tourism and services segment following indications of a strong recovery in the tourism sector.
“Taking all this into consideration and barring any unforeseen circumstances, we will work towards improving the financial performance for the remaining period of the current financial year,” he said.
Tan said the group wanted to augment its hotel management business because Malaysia’s hotel market was experiencing growth.
This is driven by increasing tourist arrivals and a focus on luxury accommodations.
According to a Statista research report, by 2024, the projected revenue in Malaysia’s hotel market is expected to reach US$1.43bil, and it will experience an annual growth rate of 4.11%, resulting in a projected market volume of US$1.68bil by 2028.
