Padlock Partners UK Fund I announces acquisition of land and development agreement in Newmarket, England

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TORONTO, Nov. 16, 2020 /CNW/ - Padlock Partners UK Fund I (the "Trust") announced today that it has completed its acquisition of Plot 200, Willie Snaith Road, Newmarket, England (the "Newmarket Property") for £619,500 (inclusive of closing costs), which was satisfied by way of cash from the proceeds of the Trust's initial public offering. The Trust indirectly acquired a freeholder interest in the Newmarket Property.

Concurrently with the closing of the acquisition of the Newmarket Property, the Trust announced today that it entered into a Funding and Development Agreement with Willie Snaith Limited pursuant to which the Trust will acquire the whole of the improvements currently underway on the parcel for approximately £2,800,000. Upon completion of development, the Trust expects that the improvements on the Newmarket Property will include a 16,423 gross square foot, purpose built self-storage warehouse. The Trust expects to further fit out the Newmarket Property in order to create approximately 48,000 net rentable square feet of Class A self-storage space at an estimated additional cost of approximately £1,800,000 with anticipated completion in December 2021.

"We are very excited about this transaction. When completed, this newly constructed Class A facility is expected to be a great addition to our existing portfolio of self-storage assets in the United Kingdom. We anticipate that the Newmarket Property will be a great complement to our Letchworth and Leighton Buzzard locations and will provide the previously underserved Newmarket community a wide selection of self-storage options. This acquisition and development allows us to continue to execute on our strategic priority to build a strong self-storage and mixed-use income producing portfolio in the UK," said Padlock Partners UK Fund I CEO, John Stevenson.

About Padlock Partners UK Fund I

The Trust is an unincorporated investment trust 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 two operating self-storage properties in Letchworth and Leighton Buzzard and development properties in London and Newmarket.

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 regarding future events, including statements concerning the Trust's plans for the Newmarket Property. In some cases, forward-looking statements can be identified by terms such as "may", "might", "will", "could", "should", "would", "occur", "expect", "plan", "anticipate", "approximate", "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 development and fit out of the Newmarket Property; the development timeline; the availability of debt financing; the capital structure of the Trust; the global and United Kingdom economic environment; foreign currency exchange rates; and governmental regulations or tax laws. 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. 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 Partners UK Fund I

John Stevenson, Chief Executive Officer, Padlock Partners UK Fund I, 480-309-6184, [email protected]; Matthew Collins, Chief Financial Officer, Padlock Partners UK Fund I, 480-428-0152, [email protected]