Summary:

• GKE Corporation’s indirect wholly owned unit, G K E Logistics Services LLC, has signed heads of terms with JAFZA Enterprises FZE, a DP World subsidiary, for a proposed 20‑year lease of a customised logistics facility in Jebel Ali Free Zone South, Dubai​

• The “demised premises” comprise Plot S40706 of about 43,000 sqm with roughly 27,000 sqm of built‑up area, including warehouse, yard and external parking, to be developed to GKE’s specifications jointly agreed with JAFZA​

• Total investment for lease payments plus plant, machinery, construction, fit‑out and pre‑development costs is estimated at around S$120 million over the 20‑year term, funded via internal resources, proceeds from GKE’s October 2025 share placement and external borrowings​

• The lease is structured on a standard lessor–lessee model with rent paid quarterly in advance from completion/Building Completion Certificate date, includes a five‑year renewal option, and keeps actual rental rates and escalation terms confidential​

• Management says the project underpins GKE’s Dubai expansion started in 2024, providing long‑term operational stability, security of tenure, cost visibility and protection against future rental volatility or relocation risk for its core warehousing and logistics business in the region​

• Financial impact on FY ending 31 May 2026 is expected to be immaterial, and there are no interested‑person elements; however, GKE must still enter definitive lease contracts, and would bear certain pre‑development costs if it ultimately walks away​

• The board cautions there is no certainty the definitive lease will be signed and urges investors to trade GKE shares with care, promising further SGXNET updates on material developments​