Padlock Partners UK Fund III (the “Trust“) announced today that it has successfully completed the acquisition of the freehold interest in the land and building at 53-57 Sutton Road, Southend-on-Sea, SS2 5PB, (the “Property“) in the United Kingdom for £4,404,500.
The Property is an existing four storey building with expansion approvals for self-storge in the busy seaside community of Southend-on-Sea, which is located 40 miles east of London with direct links to the city. The purchase and conversion to self-storage present a unique prospect of being one of the highest-quality self-storage facilities in the city centre and surrounding areas.
The existing building spans 34,961 square feet across 4 floors. The Trust plans to begin fit out and capital improvements immediately and expect to be trading in Q3 2023.
The acquisition was funded through cash and a drawdown against a new £19,086,000 debt facility which the Trust closed simultaneous with the property transaction. This Senior Secured Term Loan Facility is solely secured by a first, fixed legal mortgage over three of the Trust properties located at Watford, Woking and Southend-on-Sea. The facility was arranged by Rhodius Partners in London.
“We are pleased to acquire the Southend-on-Sea property in such a dynamic location on Sutton Road in the city centre. The bustling commercial, retail and residential catchment should provide numerous opportunities for us to serve our customers and the community. This acquisition allows us to execute on our strategic priority to build a strong income-producing portfolio focused on self-storage in the UK and pairs well with our recent Watford, Woking, Brighton and Seaford self-storage sites,” said Padlock Partners UK Fund III Chief Executive Officer John Stevenson.
This transaction marks the 5th Padlock Partners UK Fund III location in the United Kingdom. The Trust has previously acquired two London MSA self-storage development properties in Watford and Woking. Additionally, the Trust has acquired a self-storage property in Brighton and a development property in Seaford—both on the South Coast.
The Trust is an unincorporated investment trust and was established for the primary purpose of investing in a diversified portfolio of income producing commercial real estate properties in the United Kingdom with a focus on self-storage properties.