KUALA LUMPUR (Sept 24): Loss-making MLabs Systems Bhd’s wholly-owned subsidiary Next Gen Biosciences Sdn Bhd is buying a condominium apartment in Kuala Lumpur for RM7 million.

The price tag is equivalent to about 20% of MLabs’ market capitalisation of RM33.52 million, based on today’s closing of 4.5 sen.

In a filing with Bursa Malaysia, MLabs said its unit had entered into a sale and purchase agreement with Venus Assets Sdn Bhd.

The subdued high-end property market has provided a good opportunity for the group to acquire the property with good value, said MLab, adding the property is strategically located at KL City Centre and carries the “Four Seasons” brand, and has strong prospect for capital appreciation and will be able to generate rental income for the group.

“Barring unforeseen circumstances, the acquisition is expected to be completed within six months from the date of the SPA,” MLab said.