PADLOCK PARTNERS UK FUND III COMPLETES ACQUISITION OF WATFORD SELF-STORAGE PROPERTY

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TORONTO, July 27, 2022 /CNW/ - Padlock Partners UK Fund III (the "Trust") announced today that it has successfully completed the previously announced acquisition of a self-storage property located in the United Kingdom for an aggregate purchase price of approximately £9,000,000 (excluding closing costs and applicable taxes), which was satisfied by way of cash from the proceeds of the Trust's initial public offering (the "Offering").

The Trust indirectly acquired a freehold interest in a self-storage property located in Watford, United Kingdom, a municipality located approximately 16 miles northwest of London off the M25 motorway (the "Watford Property"). The Watford Property currently consists of a modern warehouse and offices totaling approximately 34,000 square feet with a self-contained, secure parking aisleway and 9.05 metre interior clearing height. The Watford Property is properly zoned for self-storage usage. The Trust plans to fit out the current warehouse in order to develop an 88,000 square foot gross area storage facility with approximately 59,200 net rentable square feet of purpose built self-storage units across three internal floors, such development to be completed in approximately ten months at an estimated aggregate cost of approximately £3,500,000. However, it is anticipated that approximately 10,000 square feet of space will begin to be available for lease after approximately six months, assuming no meaningful delays.

The Trust intends to use the balance of the net proceeds of the Offering to subsequently acquire one or more additional properties in the United Kingdom, 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 properties, and for working capital purposes.

About Padlock Partners UK Fund III

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.

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 and the manager of the Trust (the "Manager") regarding future events, including statements concerning the acquisition and development of the Watford Property 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 timeline for the Trust's development plans in respect of the Watford Property; the Manager's expectations regarding the operation and development of the Watford Property, including, but not limited to, the planned conversion of open warehouse space 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