Padlock Partners UK Fund I Announces Closing of UK Debt Financing

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TORONTO, April 15, 2021 /CNW/ - Padlock Partners UK Fund I (the "Trust") announced today that it has closed a £17,100,000 Senior Secured Term Loan Facility (the "Facility"). The Facility is solely secured by a first, fixed legal mortgage over the properties. The Facility includes a variable interest rate with a floor of 6.75% per annum and a 3 year maturity, prepayable with no penalty after 2 years.  An initial drawdown of £10,315,500 was used to refinance existing assets and for the completion of the Wimbledon property acquisition. Further drawdowns will be used toward the development of existing and new properties. The Loan was arranged by CBRE's Debt and Structured Finance team in London.

"The Facility marks the completion of our initial capital plan to finance the expansion in the United Kingdom and will allow us to acquire and develop additional high quality self-storage and mixed-use properties.  We are excited to take this next step in building a portfolio in and around the London Metropolitan area." said Padlock Partners UK Fund I CFO, Matthew Collins.

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 three operating self-storage properties in Letchworth, Leighton Buzzard and Bicester, two development properties in Wimbledon and Newmarket, and one conversion property in Chippenham which has recently commenced operations.

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 certain Properties. 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 properties; 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]