Padlock Euro Storage Fund I Acquires Strategic Ashford Property, Announces Temporary Pause in Distributions to Support Development Initiatives
TORONTO – Padlock Euro Storage Fund I (the “Trust”) today announced the acquisition of a strategically located freehold property in Ashford, London, United Kingdom, for a purchase price of £7.25 million, excluding costs. The transaction was financed using proceeds from the Trust’s recently upsized debt facility. The property will be developed into a purpose-built, four-storey self-storage facility totaling approximately 70,000 rentable square feet under the Trust’s operating brand, Cinch Storage.
The Ashford Property, which benefits from existing planning permission, will allow the Trust to commence development and lease-up activity immediately. “This deal presents a unique opportunity to develop a purpose-built self-storage facility in a market where entry is notably restricted,” said Iyngaran Muniandy, Chief Executive Officer of Padlock Euro Storage Fund I. “We are confident that this location will complement and strengthen our expanding UK portfolio.”
This acquisition marks the Trust’s 26th self-storage location in the United Kingdom and continues its targeted expansion across high-demand urban and suburban markets. The Trust’s portfolio now includes properties in Wimbledon, Watford, Brighton, Mitcham, and numerous other strategic locations throughout the UK.
In alignment with its long-term growth strategy, the Trust also announced a temporary pause in cash distributions beginning with its second quarter 2025 distribution. This decision is intended to allocate available capital toward advancing its development and lease-up pipeline, including the Ashford project and several other active developments. The Trust aims to enhance overall asset value and position itself favorably for a potential liquidity event in July 2026, coinciding with the end of the Trust’s initial term.
Management believes this capital redeployment strategy is in the best interest of unitholders, supporting the Trust’s goal of delivering long-term, sustainable value. Distributions may resume at the Trust’s discretion in future periods, subject to market conditions and portfolio performance.
Padlock Euro Storage Fund I is an unincorporated investment trust formed under the laws of Ontario, focused on acquiring and managing a diversified portfolio of income-producing real estate assets, with an emphasis on self-storage and mixed-use properties in the United Kingdom and Spain. The Ashford acquisition further underscores the Trust’s commitment to disciplined growth, operational excellence, and value creation for its investors.
