PADLOCK EURO STORAGE FUND I ANNOUNCES CLOSING OF PORTFOLIO SALE AND DECLARATION OF SPECIAL DISTRIBUTION

/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES./

TORONTO, March 23, 2026 /CNW/ - Padlock Euro Storage Fund I (the "Fund") today announced that it has closed the previously announced transaction pursuant to which QR CS Padlock LP, an affiliate of QuadReal Property Group (the "Purchaser"), indirectly acquired the Fund's portfolio of 27 self-storage and mixed-use properties located in the United Kingdom (the "Transaction") in accordance with the terms and conditions of a sale and purchase agreement (the "Purchase Agreement").

The Fund also announced that, in connection with the closing of the Transaction and consistent with the distribution framework detailed in its December 19, 2025 press release, the Fund has declared a special cash distribution to its unitholders (the "Special Distribution"), representing the initial proceeds available for distribution to unitholders following closing, after taking into account U.K. exit taxes, transaction expenses, carried interest and other customary adjustments. The Special Distribution will be payable to unitholders of record as at March 23, 2026, with an expected payment date of March 26, 2026.

In addition to paying the Special Distribution, the Fund expects to make one or more final distributions in connection with the redemption of all outstanding units in the second quarter 2026, following completion of the post‑closing adjustment procedures under the Purchase Agreement. As part of these procedures, approximately £16.6 million (the "Closing Retention Amount") has been retained in connection with certain tax matters and any difference between the estimated and actual net asset value of the portfolio as of the closing date. The amount available for such final distributions will depend on the outcome of the post‑closing adjustment process under the Purchase Agreement as well as the payment of any further expenses or other reserves maintained by or on behalf of the Fund and may be reduced if any portion of the Closing Retention Amount is retained by or repaid to the Purchaser.

The per unit amount of the Special Distribution and the estimated net asset value ("NAV"), after payment of the Special Distribution and subject to the assumptions noted below, of each class and series of units of the Fund are set out below:

Class of Units	Special Distribution (per unit)	Estimated Remaining NAV^(1) (per unit)
Class A, Series 1	C$8.20354	$3.29413
Class F, Series 1	C$8.46466	$3.39898
Class U, Series 1	£7.79058	£3.02533
Class A, Series 2	C$7.02166	$2.81961
Class F, Series 2	C$7.24515	$2.90937
Class U, Series 2	£6.79085	£2.63717
Class A, Series 3	C$7.80387	$3.13364
Class F, Series 3	C$8.05227	$3.23338
Class U, Series 3	£6.62279	£2.57183
Class A, Series 4	C$6.42441	$2.57947
Class F, Series 4	C$6.64945	$2.66984
Class U, Series 4	£6.01699	£2.33637

(1) NAV per unit represents the estimated net assets attributable to unitholders as calculated by the Fund's manager and allocated to each class and series of units of the Fund and divided by the number of units outstanding for such class and series of units as of March 23, 2026.

Unitholders are cautioned that the estimated remaining NAV figures set out in the table above are based on Clear Sky Capital Inc.'s determination, as the manager of the Fund, of the estimated NAV of the Fund following the payment of the Special Distribution, U.K. exit taxes, estimated expenses (including costs associated with operating as a reporting issuer and ceasing to operate as a reporting issuer) and the release of the Closing Retention Amount, in each case as at the date hereof. The manager of the Fund believes that such estimates are reasonable; however, actual amounts may differ, including materially, based on, among other things, the final amounts of transaction, closing and other customary costs, taxes, reserves for taxes and expenses, and the amount of the Closing Retention Amount actually received by the Fund. There is no assurance that the full amount of the estimated remaining NAV per class and series of units of the Fund will be distributed to unitholders, or at all.

The Fund currently expects the final distributions and redemption of all units of the Fund, as previously disclosed by the Fund, to occur during the second quarter of 2026.

About Padlock Euro Storage Fund I

The Fund is an unincorporated investment trust formed under the laws of the Province of Ontario and was established for the primary purpose of investing in a diversified portfolio of income producing commercial real estate properties in the United Kingdom and Spain with a focus on self-storage and mixed-use properties. The Fund completed its liquidity event on March 20, 2026 and is in the process of distributing the proceeds therefrom to its investors.

Forward-Looking Statements

This news release includes certain statements which may constitute forward-looking information within the meaning of Canadian securities laws, including, but not limited to, statements or information relating to the use of the proceeds from the sale of the portfolio; the post-closing adjustment process; the amount of the remaining NAV of the units; the timing and quantum of the final distributions and any reduction to the remaining NAV relating to the Closing Retention Amount, U.K. exit taxes, transaction costs and expenses and reserves for taxes and future expenses; and the timing of the final distributions and redemption of units of the Fund. Such forward-looking information, in some cases, can be identified by terminology such as "may", "will", "would", "expect", "plan", "anticipate", "believe", "intend", "target", "potential", "continue", or the negative thereof or other similar expressions concerning matters that are not historical facts.

By their nature, forward-looking statements and information involve known and unknown risks, uncertainties and other factors 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 control of the Fund, affect the operations, performance and results of the Fund and its business, and could cause actual results to differ materially from current expectations of estimated or anticipated events or results. The reader is cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking information as there can be no assurance that actual results will be consistent with such forward-looking information. These risks include, but are not limited to the risk factors described in the Fund's continuous disclosure materials from time to time, available on SEDAR+ at www.sedarplus.ca.

Information contained in forward-looking statements is based upon certain material assumptions that were applied in drawing a conclusion or making a forecast or projection, including the perceptions of management of the Fund of historical trends, current conditions and expected future developments, as well as other considerations that are believed to be appropriate in the circumstances, including that the net proceeds from the transaction will be used as described herein.

These forward-looking statements are made as of the date of this news release and, except as expressly required by law, the Fund 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 Euro Storage Fund I

For further information: please contact: Iyngaran Muniandy, Chief Executive Officer, Padlock Euro Storage Fund I, [email protected]; Matthew Collins, Chief Financial Officer, Padlock Euro Storage Fund I, [email protected]