On April 7, 2025, Padlock Euro Storage Fund I (“Euro Fund”) announced an agreement to acquire Padlock Partners UK Fund IV (“Fund IV”) through a statutory plan of arrangement, consolidating the two entities under the Euro Fund’s name. This follows a prior consolidation in July 2024 involving Padlock Partners UK Funds I, II, and III. The Merged Fund will own 25 UK self-storage properties totaling approximately 1,025,094 square feet, with a combined appraised value of GBP 208.9 million as of December 31, 2024.

Fund IV unitholders will exchange their units for equivalent Series 4 Merged Fund units. Canadian residents are expected to benefit from a tax-deferred rollover. The consolidation aims to deliver stronger unitholder value through increased scale, improved geographic diversification, enhanced debt financing terms, and reduced operating costs. The Merged Fund will target an annual pre-tax distribution yield of 6.0% and a 10–12% pre-tax internal rate of return over a two-year horizon, with two one-year extensions.

There will be no crystallization of carried interest, and governance structures remain unchanged. The transaction is subject to court and unitholder approvals at meetings scheduled for May 9, 2025, with closing expected in mid-May. The boards of both funds unanimously approved the deal based on fairness opinions from Evans & Evans, Inc. CIBC World Markets Inc. acted as exclusive financial advisor. Legal counsel included Blake, Cassels & Graydon LLP for the funds and Wildeboer Dellelce LLP for the independent trustees.