PADLOCK PARTNERS UK FUND IV COMPLETES ACQUISITION OF NEWBURY PROPERTY

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TORONTO, July 27, 2023 /CNW/ - Padlock Partners UK Fund IV (the "Trust") announced today that it has successfully completed the previously announced acquisition of a redevelopment property located in Newbury, United Kingdom for an aggregate purchase price of £9,185,000 (exclusive of closing costs), which was satisfied by way of cash from the proceeds of the Trust's initial public offering (the "Offering").

On July 26, 2023, the Trust indirectly acquired a freehold interest in a self-storage warehouse property located in Newbury, United Kingdom (the "Newbury Property"). The Newbury Property currently comprises an existing three-storey warehouse with an office on a 1.42 acre lot and offers approximately 41,000 net rentable square feet of storage units plus an additional 10,000 net rentable square feet of bulk space. The conversion from warehouse to self-storage achieved practical completion and commenced operations in early March 2023. The Trust is currently in the process of resealing the parking lot and adding perimeter fencing, and expects such capital improvements to be completed by the end of July 2023.

"We are pleased to announce the acquisition of this new property and expansion of our portfolio in the United Kingdom. We believe that the site greatly benefits from being a Class-A development with strong prominence in a growing market." said Padlock Capital Partners CEO John Stevenson.

The Trust intends to use the balance of the net proceeds of the Offering for capital expenditures on the Newbury Property and the properties located in Edmonton and Haverhill, 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 Trust's portfolio of properties currently consists of the Newbury Property and properties located in Edmonton and Haverhill, United Kingdom.

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 redevelopment of the Newbury 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 Newbury Property; the Manager's expectations regarding the operation and redevelopment of the Newbury Property, including, but not limited to, the planned resealing of the parking lot and addition of perimeter fencing; 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