PADLOCK EURO STORAGE FUND I COMPLETES THE ACQUISITION OF THE ASHFORD PROPERTY AND ANNOUNCES A PAUSE OF DISTRIBUTIONS
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TORONTO, June 10, 2025 /CNW/ - Padlock Euro Storage Fund I (the "Trust") announced today that it has successfully completed the acquisition of a freehold property located in Ashford, London, United Kingdom (the "Ashford Property") for a purchase price of £7,250,000 excluding costs. The transaction was satisfied by way of cash from the proceeds of the Trust's recently upsized debt facility.
The Ashford Property consists of a freehold interest in an undeveloped parcel of land on which a purpose-built self-storage facility will be constructed netting approximately 70,000 rentable square feet of self-storage units. With in-place planning permission, the Trust plans to imminently construct and fit out a four-storey warehouse and lease-up the Property through stabilization.
"This deal presents a unique opportunity to develop a purpose-built self-storage facility in a market where entry is notably restricted," said Iyngaran Muniandy, Chief Executive Officer, Padlock Euro Storage Fund I. "We are confident that this location will complement and enhance the strength of our existing and expanding portfolio."
This transaction marks Padlock Euro Storage Fund I's 26th location in the United Kingdom, all operated under the Cinch Storage brand. The Trust and its predecessors previously acquired self-storage properties across London, as well as the Southwest and Southeast of the United Kingdom. The Trust intends to use the balance of the capacity of its 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 United Kingdom, with a particular focus on self-storage.
The Trust also announced that in order to prepare for a future liquidity event, with the Trust's term approaching in July 2026, the Trust will pause cash distributions beginning with its second quarter 2025 distribution in order to allocate cash flow that would otherwise be used to fund distributions towards the Trust's accretive development pipeline. This strategic deployment of capital will better position the Trust to complete the development and fit-out of the Trust's properties that are currently under development and in lease-up. The Trust's managers believe that this strategy will better position the Trust for a liquidity event and have a positive impact on the Trust's ability to deliver value to unitholders. The Trust may resume distributions to unitholders in its discretion in future periods.
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 and Spain with a focus on self-storage and mixed-use properties. Currently, in addition to Ashford, the Trust has acquired self-storage properties in Bicester, Letchworth, Leighton Buzzard, Wimbledon, Chippenham, Enfield, Huntingdon, Brentwood, Newmarket, Houghton Regis, Brighton, Watford, Woking, Southend-on-Sea, Seaford, Gillingham, Mitcham, Sittingbourne, Wisbech, Swindon, Edmonton, Haverhill, Newbury, Chippenham and Sidcup.
Forward-looking Statements
This news release contains statements that include forward-looking information within the meaning of Canadian securities laws, including, but not limited to, statements or information relating to the development of the Trust's assets, the nature of any potential liquidity event, the use of proceeds from the Trust's debt facility, and future cash distributions. 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; assumptions about the markets in which the Trust intends to operate; and assumptions relating to a potential liquidity event. 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, 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