PADLOCK PARTNERS UK FUND II COMPLETES ACQUISITION OF HOUGHTON REGIS PROPERTY

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TORONTO, Sept. 1, 2022 /CNW/ - Padlock Partners UK Fund II (the "Trust") announced today that it has successfully completed the acquisition of the freehold interest in the land and existing building at Cemetery Road, Houghton Regis LU5 5BJ in the United Kingdom (the "Houghton Regis Property") for £2,300,000. The purchase price was satisfied by way of cash from the proceeds of the Trust's initial public offering.

The Trust intends to convert and expand the existing warehouse into approximately 35,000 net rentable square feet of Class A self-storage space. Total deal capitalization is £3,650,000 inclusive of purchase price. Total build out and conversion is expected to complete within 12 months with the first of the newly created self-storage units expected to be available in the 3rd quarter of 2023. 

This transaction marks the 4^th Padlock Partners UK Fund II location in the United Kingdom. The Trust has previously acquired self-storage properties in Brentwood, Huntingdon, and Newmarket.

"We are happy to acquire this property in such a vibrant market in Houghton Regis. The central location and prominence of the site should provide for 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 self-storage and mixed-use income producing portfolio in the UK," said Padlock Partners UK Fund II CEO, John Stevenson.

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. Prior to the Trust's acquisition of the Houghton Regis Property, the Trust had acquired two operating self-storage properties in Huntingdon and Newmarket and a development property in Brentwood.

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 timing and terms of the consideration and the development and lease-up of the Houghton Regis Property. 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 capital structure of the Trust; the global and United Kingdom economic environment; the timing and improvements or fit-outs of the Trust's properties; 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 May 25, 2021, 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, 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 II