The newly formed Padlock Euro Storage Fund 1 has acquired three U.K. self-storage properties for £8.8 million.

The fund is managed by Toronto-based Padlock Capital Partners. The self-storage facilities are leasehold properties in the English locales of Gillingham, Mitcham, and Sittingbourne.

Mitcham is part of Greater London, while Sittingham is situated near Canterbury and Gillingham lies further south.

The Gillingham property comprises 27,180 net rentable square feet, while the Sittingbourne and Mitcham facilities contain 27,120 and 23,500 net rentable sf respectively.

The Padlock Euro Storage Fund 1 portfolio now contains 18 self-storage assets. The three acquisitions come after the fund indirectly purchased 15 self-storage facilities in the U.K. through a merger with two other Padlock funds.

“We are thrilled about our continued growth in the United Kingdom and the addition of these three facilities to our self-storage platform,” said Padlock Euro Storage Fund I CEO John Stevenson. “This is an excellent opportunity to serve the residents and businesses of these areas while expanding our presence in greater London and the southeastern coast.”

Padlock completed the three acquisitions with cash obtained through a new £102.7 million senior secured term loan facility. The variable-rate loan is scheduled to mature in three years, and Padlock has obtained to options to extend it for one year.

Padlock is using the loan facility to refinance existing debt, finance capital expenditures tied to existing properties and acquire new sites.

“This facility represents the fulfillment of our strategy to refinance our expansion in the United Kingdom, enabling us to acquire and develop more high-quality self-storage and mixed-use properties,” said Matthew Collins, the fund’s CFO, in a separate news release.

“We are enthusiastic about advancing our efforts to build a robust portfolio across the United Kingdom.”

The loan facility was arranged by JLL’s debt and structured finance team in London.

Photo: Padlock/Cinch Storage