PADLOCK PARTNERS UK FUND IV COMPLETES ACQUISITION OF EDMONTON AND HAVERHILL PROPERTIES
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TORONTO, July 19, 2023 /CNW/ - Padlock Partners UK Fund IV (the "Trust") announced today that it has successfully completed the previously announced acquisition of two redevelopment properties located in Edmonton and Haverhill, United Kingdom for aggregate purchase prices of approximately £3,737,500 and £3,450,000 (exclusive of closing costs), respectively, which were satisfied by way of cash from the proceeds of the Trust's initial public offering (the "Offering") and, in the case of the Edmonton Property (as defined below), the assumption of debt.
On July 12, 2023, the Trust indirectly acquired a freehold interest in a warehouse property located in Edmonton, United Kingdom (the "Edmonton Property"). The Edmonton Property currently comprises an existing two-storey office building, a warehouse for storage and a canopy shed for parking and distribution and contains 24,199 square feet of gross internal area. The Trust plans to demolish the existing structures and construct and fit-out a new building to produce 42,000 net rentable square feet of self-storage units across the three floors. Such redevelopment is expected to be completed in approximately 21 months.
On July 19, 2023, the Trust indirectly acquired a freehold interest in a commercial property located in Haverhill, United Kingdom (the "Haverhill Property"). The Haverhill Property currently comprises an existing 10,000 square foot warehouse, offices, and showroom. The Trust plans to expand the existing structure, increase the roof heights and reclad the exterior to create a self-storage facility with approximately 45,500 net rentable square feet of storage units across three internal floors. Such redevelopment is expected to be completed in approximately 12 months.
"We are thrilled to be able to secure these properties for our continued expansion in the United Kingdom. Both the Edmonton and Haverhill properties are superb sites that will be a great addition to our self-storage portfolio of Class-A properties. We look forward to serving the neighborhoods and local areas with our unique brand of self-storage and lifestyle services," said CEO, John Stevenson.
The Trust intends to use the balance of the net proceeds of the Offering to acquire a self-storage property located in Newbury, United Kingdom, for capital expenditures on the Edmonton Property, the Haverhill Property and the property located in Newbury, United Kingdom (including to redevelop the Haverhill Property and the property located in Newbury, United Kingdom), and to subsequently acquire 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 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 portfolio of income producing commercial real estate properties in the United Kingdom with a focus on self-storage properties. The Trusts portfolio of properties currently consists of the Edmonton Property and the Haverhill Property.
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 redevelopment of the Edmonton Property and the Haverhill Property and the anticipated use of the remaining net 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 redevelopment plans in respect of the Edmonton Property and the Haverhill Property; the Manager's expectations regarding the operation and redevelopment of the Edmonton Property and the Haverhill Property, including, but not limited to, the planned conversion of open warehouse space into self-storage units; the capital structure of the Trust; the extent of competition for self-storage properties; assumptions about the markets in which the Trust intends to operate; the global and United Kingdom economic environment, including changes in interest rates and the rate of inflation; 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 June 23, 2023, 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 IV
John Stevenson, Chief Executive Officer, Padlock Partners UK Fund IV, [email protected]; Matthew Collins, Chief Financial Officer, Padlock Partners UK Fund IV, [email protected]
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