GKE Corporation Announces Strategic Expansion in Dubai with Major 20-Year Lease Agreement

Key Highlights

• Strategic Lease Agreement: GKE Corporation Limited, through its indirect wholly-owned subsidiary G K E Logistics Services LLC (“GKE Dubai”), has entered into a head of terms (HOTs) with JAFZA Enterprises FZE (a subsidiary of DP World Limited) for a proposed 20-year lease on a strategically located logistics facility in Jebel Ali Free Zone South, Dubai, United Arab Emirates.
• Significant Investment: The total estimated investment cost for the project, including lease rent, plant and machinery, construction, fit-out, and pre-development expenses, is approximately S\$120 million over the 20-year lease term.
• Funding Structure: The investment will be financed through internally generated resources, proceeds from a recent share placement completed in October 2025, and external borrowings.
• Development Customisation: The premises will be developed according to a jointly agreed development brief to meet GKE Dubai’s operational requirements.
• Long-Term Stability: The lease provides security of tenure, supports long-term business planning, enables efficient amortisation of investment, and mitigates risks related to rental volatility and potential relocations.
• Potential for Future Growth: GKE Dubai holds an option to extend the lease for an additional 5 years after the initial 20-year term.
• Financial Impact: The company does not expect a material impact on net tangible assets or earnings per share for the financial year ending 31 May 2026.
• Shareholder and Director Interests: None of the directors or substantial shareholders have any direct or indirect interest in the proposed lease.
• Cautionary Note: The HOTs are non-binding and subject to the execution of definitive legal agreements. There is no certainty the transaction will be completed.

Detailed Expansion Overview

GKE Corporation Limited has taken a major step towards strengthening its international logistics presence by entering into a head of terms for a 20-year lease agreement in Dubai, UAE. The facility will be located in the Jebel Ali Free Zone South—one of the region’s most significant logistics and trade hubs—owned and managed by JAFZA Enterprises FZE, a subsidiary of global logistics leader DP World. DP World operates across more than 80 countries and handles approximately 10% of global trade, positioning GKE for substantial connectivity and operational advantages.

The Demised Premises, situated on Plot No. S40706, will span approximately 43,000 sqm, with a built-up area of around 27,000 sqm, including facilities, yards, and parking. The facility will be developed and modified based on a brief jointly agreed by GKE Dubai and JAFZA, ensuring the infrastructure suits GKE Dubai’s specific warehousing and logistics needs.

Financial Commitment and Funding

The total investment for this project is estimated at S\$120 million, covering lease rental payments, equipment, construction, fit-outs, and all related costs over the 20-year term. The company plans to finance this via a combination of internal resources, capital raised from a share placement completed in October 2025, and additional external borrowings.

Lease Structure and Terms

• Lease Model: Lessee and lessor arrangement.
• Lease Tenure: 20 years, commencing upon completion of development and issuance of a Building Completion Certificate.
• Rent Payments: Lease payments are to be made quarterly in advance; specific rates and increments are confidential.
• Renewal Option: Opportunity to extend for an additional 5-year period.
• Development Timeline: Handover dates are subject to further planning, design, and development assessments.
• Binding Agreements: The HOTs remain subject to the signing of definitive legal contracts. If GKE Dubai does not proceed, it will bear certain pre-development costs.

Implications for Shareholders and Potential Investors

• This strategic move marks GKE’s deepened commitment to the Middle East logistics market, positioning the company for future growth in a key global trade corridor.
• The substantial investment and long-term lease could support stable revenues and enhance operational resilience, but it also introduces financial obligations and exposure to macroeconomic risks.
• The transaction is still subject to final legal agreements. There is no guarantee that the lease will be executed, and shareholders are advised to monitor for further updates.
• The company has explicitly stated that there will be no material impact on net tangible assets or earnings per share for the financial year ending 31 May 2026.
• No directors or controlling shareholders have any interests in the deal, ensuring transparency in the transaction process.

Next Steps and Updates

GKE Corporation will provide further updates via SGXNET as material developments occur. Investors are advised to stay informed and exercise caution, as the deal has not yet reached a binding stage.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. The information is based on the company’s official disclosure as of 6 January 2026. No definitive agreement has been signed, and there is no certainty that the lease will proceed. Investors should consult their professional advisers before making any investment decisions related to GKE Corporation Limited.

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