Padlock Partners UK Fund III (the “Trust”) announced today that it has successfully completed the acquisition of the freehold interest in the land and building at The Depository, South Road, Brighton BN1 6SB (the “Property”) in the United Kingdom via a share purchase agreement of the company Store 2 Capital Limited. Total deal capitalization including expected capital expenditures was £10,289,000.
The Property was purchased via a subsidiary of the Trust (the “Buyer”) pursuant to a share purchase agreement, whereby the Buyer agreed to acquire 100% of the outstanding shares of Store 2 Capital Limited. In addition, the rights to acquire a vacant industrial leasehold property in the busy seaside community of Seaford, being the land and Buildings at Unit 4 Cradle Hill Industrial Estate, Seaford, East Sussex, BN25 3JE, were secured as part of this transaction for total deferred consideration including capital expenditure estimate of £2,711,000 following the satisfaction of a consent receivable from the freeholder.
The Brighton property is an operating self-storage facility with expansion approvals located 45 miles south of London. The purchase and expansion of the Property present the unique prospect of being one of the highest-quality self-storage facilities in Brighton. The existing self-storage business contains approximately 13,300 of net rentable square footage. The Property recently received planning approval to add 10,600 additional net rentable square feet for a total when completed of 23,900 nrsf. The additional expansion is expected to take 10 months to complete.
The Seaford property is an existing vacant warehouse with preliminary 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 option to purchase this site is contingent on the satisfaction of securing property and council consents. The potential 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 preliminary planning approval to expand the building and reclad the exterior. The proposed fit out/expansion will increase the total net rentable square feet to 23,900 and is expected to be completed within 12 months of acquisition.
“We are pleased to acquire the Brighton property and the rights to acquire the Seaford 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 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 and Woking self-storage development sites,” said Padlock Partners UK Fund III CEO, John Stevenson.
This transaction marks the 3rd Padlock Partners UK Fund III location in the United Kingdom and includes the rights to acquire a 4th location. The Trust has previously acquired self-storage development properties in Watford and Woking – both within the London MSA. The Trust intends to acquire one or more additional properties in the United Kingdom, consistent with the Trust’s investment objectives to 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.
