GKE Corp amp;ndash; A possible turnaround story unfolds

On 16 Oct 2015, after seeing GKE Corp garnering significant media attention upon entering into a sales and leaseback agreement with Viva Industrial Trust for GKE’s existing headquarters cum warehouse property located at 30 Pioneer Road, I wrote a write-up on GKE. (See here for my previous write-up)Most of the updates outlined in my previous write-up have occurred, thus it is apt to provide an update on GKE’s upcoming developments in 4QFY16F (Financial year ends in May) and FY17F and beyond. Gain of S$12m to be recognized in 4QFY16FAccording to GKE’s announcement, the disposal of 30 Pioneer road was completed on 15 Apr 2016. With the disposal, GKE will receive S$45m in sales proceeds and book in an approximate gain amounting to S$12m. This is noteworthy on multiple fronts, viz.a) With S$45m in sale proceeds, GKE cash will balloon to S$55.6m (assuming cash remains at S$10.6m as per 3QFY16). This cash hoard will prove useful for their redevelopment of 39 Benoi Road and future business opportunities andb) The sale proceeds of S$45m are considerable vis-à-vis their market capitalization of S$55.7m. Redevelopment of 39 Benoi Road expected to be completed by Mar 2018According to GKE’s...