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TORONTO, Sept. 30, 2022 /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 existing building at Forsyth Road, Sheerwater, Woking, Surrey GU21 5SB in the United Kingdom for £6,400,000. 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 63,000 net rentable square feet of Class A self-storage space across 4 internal floors. The property is located in the London MSA, just outside the M25 approximately 22 miles southwest of central London. Total deal capitalization is approximately £10,800,000 inclusive of purchase price. Total build-out and conversion is expected to complete in 2023 with the first of the newly created self-storage units expected to be available in the 4th quarter of 2023.
"We are pleased to acquire this property in such a prominent location in Woking. The central location and bustling commercial, retail, and residential catchment 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 income-producing portfolio focused on self-storage in the UK and pairs well with our recent Watford self-storage development site which is also in the London MSA," said Padlock Partners UK Fund III CEO, John Stevenson.
This transaction marks the 2nd Padlock Partners UK Fund III location in the United Kingdom. The Trust has previously acquired a self-storage development property in Watford.
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.
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 and the manager of the Trust (the "Manager") regarding future events, including statements concerning the acquisition and development of the Woking 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 Manager's expectations regarding the timeline for the Trust's development plans in respect of the Woking Property; the Manager's expectations regarding the operation and development of the Woking 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, included under the heading "Risk Factors". 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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