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TORONTO, Aug. 2, 2024 /CNW/ – Padlock Euro Storage Fund I (the “Trust”) announced today that it has successfully completed the acquisition of three leasehold properties located in Gillingham, Mitcham, and Sittingbourne, United Kingdom for a combined purchase price of £8,775,000 excluding costs, which was satisfied by way of cash from the proceeds of the Trust’s recently secured refinance debt facility.
The Gillingham Property, purchased for £4,186,000, consists of a leasehold interest in an existing self-storage facility located in Gillingham, UK. The 3-story facility currently offers approximately 27,180 net rentable square feet of self-storage units.
The Sittingbourne Property, purchased for £4,186,000, is a leasehold interest in an existing self-storage facility located in Sittingbourne, UK. The 3-story facility currently offers approximately 27,120 net rentable square feet of both indoor and outdoor self-storage units.
The Mitcham Property, purchased for £403,000, consists of a leasehold interest in an existing self-storage facility in Mitcham, UK. The 2-story facility currently contains approximately 23,500 net rentable square feet of self-storage units.
The Trust plans to continue to lease up all three properties through stabilisation.
“We are thrilled about our continued growth in the United Kingdom and the addition of these three facilities to our self-storage platform,” said Padlock Euro Storage Fund I CEO John Stevenson. “This is an excellent opportunity to serve the residents and businesses of these areas while expanding our presence in greater London and the southeastern coast.”
These transactions mark the 16th, 17th, and 18th Padlock Euro Storage Fund I locations in the United Kingdom, all operated under the Cinch Storage brand. The Trust has previously acquired self-storage properties across London, the Southwest and Southeast of the United Kingdom. The Trust intends to use the balance of the net proceeds of the refinance debt facility consistent with the Trust’s investment objectives to, among other things, provide unitholders with an opportunity to invest in a portfolio of diversified income-producing commercial real estate properties in the UK, with a particular focus on self-storage.
About Padlock Euro Storage Fund I
The Trust is an unincorporated investment trust formed under the laws of the Province of Ontario and was established for the primary purpose of investing in a diversified portfolio of income producing commercial real estate properties in the United Kingdom with a focus on self-storage and mixed-use properties. Currently, the Trust has acquired self-storage properties in Bicester, Letchworth, Leighton Buzzard, Wimbledon, Chippenham, Enfield, Huntingdon, Brentwood, Newmarket, Houghton Regis, Brighton, Watford, Woking, Southend, and Seaford.
Forward-looking Statements
This news release contains statements that include forward-looking information within the meaning of Canadian securities laws. These forward-looking statements reflect the current expectations of the Trust, Clear Sky and the Manager regarding future events. In some cases, forward-looking statements can be identified by terms such as “may”, “might”, “will”, “could”, “should”, “would”, “occur”, “expect”, “plan”, “anticipate”, “believe”, “intend”, “seek”, “aim”, “estimate”, “target”, “project”, “predict”, “forecast”, “potential”, “continue”, “likely”, “schedule”, or the negative thereof or other similar expressions concerning matters that are not historical facts.
Material factors and assumptions used by management of the Trust to develop the forward-looking information include, but are not limited to, the Trust’s current expectations about: the Manager’s expectations regarding the operation and development of its properties, including the expected timeline for the Trust’s development plans; the capital structure of the Trust; and assumptions about the markets in which the Trust intends to operate. While management considers these assumptions to be reasonable based on currently available information, they may prove to be incorrect.
Although management believes the expectations reflected in such forward-looking statements are reasonable and represent the Trust’s internal projections, expectations and beliefs at this time, such statements involve known and unknown risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities may not be achieved. A variety of factors, many of which are beyond the Trust’s control, could cause actual results in future periods to differ materially from current expectations of estimated or anticipated events or results expressed or implied by such forward-looking statements. Such factors include the risks identified in the annual management’s discussion and analysis of the Trust and in the joint management information circular of the Trust and the predecessor Padlock funds dated June 24, 2024, including under the heading “Risk Factors” therein, as well as, among other things, risks related to the availability of suitable properties for purchase by the Trust, the availability of mortgage financing for such properties, and general economic and market factors, including interest rates, prospective purchasers of real estate, business competition, negative geo-political events, changes in government regulations or income tax laws. Readers are cautioned against placing undue reliance on forward-looking statements. Except as required by applicable Canadian securities laws, the Trust undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.
SOURCE Padlock Euro Storage Fund I
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