Padlock Partners UK Fund IV, an unincorporated investment trust with interest in commercial real estate including self-storage properties, has completed an initial public offering (IPO) in Canada and raised approximately C$45.2 million. The capitalization was made through the distribution of class units at either C$10 (class A, C and F) or £10 (class U) each. The fund is in the process of indirectly acquiring an existing storage facility and two redevelopment sites in the United Kingdom, with an expected closing date of July 31, according to a press release.
Any balance of net proceeds following the initial acquisitions will be used for capital expenditures as well as future U.K. property purchases. The goal of the fund is to provide shareholders opportunities to invest in a “portfolio of income-producing commercial real estate properties in the United Kingdom, with a focus on self-storage,” the release stated.
The trust units were offered to the public through a syndicate of agents led by CIBC World Markets Inc. and also included Canaccord Genuity Corp., iA Private Wealth Inc., Raymond James Ltd., Richardson Wealth Ltd. and Wellington-Altus Private Wealth Inc. The offer wasn’t available in the United States.
Padlock Capital Partners IV LLC, an affiliate of Phoenix-based Clear Sky Capital Inc., serves as the fund promoter and will manage the portfolio.
Founded in 2009, Clear Sky and its affiliates have acquired or developed $1.35 billion of real estate in the U.K. and U.S. and invested approximately $535 million of equity through various investment vehicles, the release stated. The company’s real estate includes manufactured-housing communities, multi-family properties and self-storage facilities.