PADLOCK PARTNERS UK FUND III COMPLETES ACQUISITION OF SOUTHEND-ON-SEA SELF-STORAGE PROPERTY
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TORONTO, March 10, 2023 /CNW/ - Padlock Partners UK Fund III (the "Trust") announced today that it has successfully completed the acquisition of the freehold interest in the land and building at 53-57 Sutton Road, Southend-on-Sea, SS2 5PB, (the "Property") in the United Kingdom for £4,404,500.
The Property is an existing four storey building with expansion approvals for self-storge in the busy seaside community of Southend-on-Sea, which is located 40 miles east of London with direct links to the city. The purchase and conversion to self-storage present a unique prospect of being one of the highest-quality self-storage facilities in the city centre and surrounding areas.
The existing building spans 34,961 square feet across 4 floors. The Trust plans to begin fit out and capital improvements immediately and expect to be trading in Q3 2023.
The acquisition was funded through cash and a drawdown against a new £19,086,000 debt facility which the Trust closed simultaneous with the property transaction. This Senior Secured Term Loan Facility is solely secured by a first, fixed legal mortgage over three of the Trust properties located at Watford, Woking and Southend-on-Sea. The facility was arranged by Rhodius Partners in London.
"We are pleased to acquire the Southend-on-Sea property in such a dynamic location on Sutton Road in the city centre. The bustling commercial, retail and residential catchment should provide numerous opportunities for us to serve our customers and the community. This acquisition allows us to execute on our strategic priority to build a strong income-producing portfolio focused on self-storage in the UK and pairs well with our recent Watford, Woking, Brighton and Seaford self-storage sites," said Padlock Partners UK Fund III Chief Executive Officer John Stevenson.
This transaction marks the 5th Padlock Partners UK Fund III location in the United Kingdom. The Trust has previously acquired two London MSA self-storage development properties in Watford and Woking. Additionally, the Trust has acquired a self-storage property in Brighton and a development property in Seaford—both on the South Coast.
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 properties.
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, including statements concerning the expected closing of the Trust's acquisitions and the anticipated use of proceeds of the Offering. 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 availability of properties for acquisition and the price at which such properties may be acquired; the availability of mortgage financing; the Manager's expectations regarding the expected timeline for the Trust's development plans; the Manager's expectations regarding the operation and development of the Properties, including, but not limited to, the planned conversion of open warehouse spaces into self-storage units; the capital structure of the Trust; the global and United Kingdom economic environment; the impact of negative geopolitical events, including the conflict in Ukraine; 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. Such factors include the risks identified in the final prospectus of the Trust dated July 11, 2022, 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 Partners UK Fund III
John Stevenson, Chief Executive Officer, Padlock Partners UK Fund III, [email protected]; Matthew Collins, Chief Financial Officer, Padlock Partners UK Fund III, [email protected]; Contact Telephone Number for Padlock Partners UK Fund III: 606-428-8961
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