PADLOCK PARTNERS UK FUND III COMPLETES ACQUISITION OF SEAFORD PROPERTY

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TORONTO, Dec. 8, 2022 /CNW/ - Padlock Partners UK Fund III (the "Trust") announced today that it has successfully completed the acquisition of the long leasehold interest in the land and buildings at Unit 4 Cradle Hill Industrial Estate, Seaford, East Sussex, in the United Kingdom (the "Property"). The opportunity to purchase the Property was secured via a share purchase agreement which included the previously announced Brighton self-storage acquisition.

The Seaford property is a vacant industrial leasehold property in the busy seaside community of Seaford and was secured for a total consideration of £1,161,000 following the satisfaction of a consent received from the freeholder as reported last month when the acquisition of the Brighton property was completed.

After giving effect to working capital adjustments the purchase price was satisfied by way of cash from the proceeds of the Trust's initial public offering. In addition, the Trust has secured a Senior Secured Term Loan Facility (the "Facility") with Lloyds Bank plc to further support the working capital and planned capital expenditures.

The Seaford property is an existing vacant warehouse with expansion/fit out approvals for self-storage. The property is located 50 miles south of London and is 13 miles east of the Brighton Property. The purchase of the long leasehold and expansion of the property present the opportunity of being the only self-storage facility in Seaford. The existing Seaford warehouse contains approximately 15,605 square feet. The property recently received planning approval to expand the building and reclad the exterior. The improvements will increase the total net rentable square feet to 23,900 and is expected to be completed within 12 months.

"We are pleased to complete the acquisition of the Seaford property to complement the recently acquired Brighton property in such strategic locations on the South Coast. The bustling commercial, retail and residential catchment should provide for numerous opportunities for us to serve our customers and the community. This acquisition means the Trust is now fully deployed and the focus is now on converting the development properties into fully operational self-storage facilities. The new debt facility with Lloyds provides the Fund with some additional capital and marks the start of a new relationship with one of the major clearing banks in the UK." said Padlock Partners UK Fund III CEO, John Stevenson.

This transaction completes the 4th Padlock Partners UK Fund III location in the United Kingdom. The Trust has previously acquired a self-storage property in Brighton as reported in November and development properties in Watford and Woking – both within the London MSA. This is 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.

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, 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 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 in respect of the properties including, but not limited to, the planned conversion of open warehouse space into self-storage units; planned extension works for additional self-storage units; the Manager's expectations regarding the subsequent operation of the properties;  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; inflation; 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

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