Padlock Euro Storage Fund I has completed its portfolio sale of 27 self-storage and mixed-use properties in the United Kingdom to an affiliate of QuadReal Property Group.

Under a sale-and-purchase agreement, Vancouver-based QuadReal’s QR CS Padlock LP indirectly acquired a 95% interest in the holding companies that own the assets, while affiliates of Phoenix-headquartered Clear Sky Capital and members of management will retain an indirect 5% equity interest.

The fund was managed by Toronto-based Padlock Capital Partners, an affiliate of real estate and development firm Clear Sky Capital.

The transaction values the properties at a gross asset value of approximately £270 million. QuadReal will assume the fund’s proportionate share of existing debt on the portfolio.

After debt assumption and working-capital adjustments, the fund expects net cash proceeds of about £93.6 million for its 95% interest.

Padlock previously announced that, under the agreement, the consideration may be reduced by £3 million if a planning condition related to the Chippenham South property is waived by the purchaser by April 20, 2026. In addition, about £16.6 million has been retained by the purchaser and the fund or its affiliates to address any post-closing net asset value shortfall, with no guarantee that any portion of the retained amount will ultimately be distributed to unitholders.

John Stevenson, a self-storage investment specialist based in Phoenix, currently heads both Padlock Capital and Clear Sky.

Pictured: Cinch storage facility in the U.K. owned by Padlock Euro Storage Fund I.