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 name. The transaction was approved by unitholders on May 8 and completed on May 14, 2025, resulting in the dissolution of Fund IV.

The Merged Fund now owns 25 self-storage properties across four UK primary markets, 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 received equivalent Series 4 Merged Fund units. Canadian residents are expected to benefit from a tax-deferred rollover.

The consolidation follows a similar merger of UK Funds I, II, and III in July 2024 and aims to enhance unitholder value through greater scale, improved geographic diversification, better debt terms, and reduced operating costs. The Merged Fund targets a 6.0% annual pre-tax distribution yield and a 10–12% pre-tax internal rate of return over two years, with two possible one-year extensions.

Governance structures remain unchanged, and there is no crystallization of carried interest. The boards of both funds unanimously approved the deal, supported by fairness opinions from Evans & Evans, Inc. CIBC World Markets Inc. acted as financial advisor, with legal counsel from Blake, Cassels & Graydon LLP and Wildeboer Dellelce LLP.