/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES./

TORONTO, June 5, 2026 /CNW/ - Padlock Euro Storage Fund I (the "Fund") today announced that the Fund has declared a cash distribution (the "Final Distribution") on all of Class A, Class F and Class U units of the Fund (the "Units"). The Fund also announced that immediately following payment of the Final Distribution and payment of the Redemption Price (as defined below), it would redeem and subsequently cancel all issued and outstanding Units (the "Mandatory Redemption") in accordance with the third amended and restated declaration of trust of the Fund dated May 13, 2025, as amended.

In accordance with the post-closing adjustment procedures of the previously announced sale and purchase agreement (the "Purchase Agreement"), pursuant to which QR CS Padlock LP, an affiliate of QuadReal Property Group, indirectly acquired the Fund's portfolio of 27 self-storage and mixed-use properties located in the United Kingdom (the "Transaction"), the Fund received proceeds of approximately £16.4 million (the "Post-Closing Proceeds").

The Final Distribution represents the proceeds available for distribution on the Units following receipt of the Post-Closing Proceeds, after taking into account payment of further expenses and reserves maintained by or on behalf of the Fund in connection with the wind-up of the Fund (the "Wind-Up Reserves"). The Mandatory Redemption will be effected in connection with the payment by the Fund of a nominal amount per Unit (the "Redemption Price"), representing the remaining assets of the Fund after paying the Final Distribution and taking into account the Wind-Up Reserves.

The Final Distribution and Redemption Price per Unit for each class and series of Units of the Fund is set out below:

The Final Distribution and Redemption Price will be payable to holders of the Units (the "Unitholders") of record as at June 5, 2026, with an expected payment date of June 11, 2026. The Mandatory Redemption is expected to be effected on the payment date, following payment of the Redemption Price.

Following the Mandatory Redemption, the Fund intends to apply to cease to be a reporting issuer in each of the provinces and territories of Canada in which it was a reporting issuer.

About Padlock Euro Storage Fund I

The Fund is an unincorporated investment trust formed under the laws of the Province of Ontario and was established for the primary purpose of investing in a diversified portfolio of income producing commercial real estate properties in the United Kingdom and Spain with a focus on self-storage and mixed-use properties. The Fund completed its liquidity event on March 20, 2026 and is in the process of distributing the proceeds therefrom to its investors.

Forward-Looking Statements

This news release includes certain statements which may constitute forward-looking information within the meaning of Canadian securities laws, including, but not limited to, statements or information relating to the timing of the Final Distribution and Mandatory Redemption; and the intention of the Fund to cease to be a reporting issuer. Such forward-looking information, in some cases, can be identified by terminology such as "may", "will", "would", "expect", "plan", "anticipate", "believe", "intend", "target", "potential", "continue", or the negative thereof or other similar expressions concerning matters that are not historical facts.

By their nature, forward-looking statements and information involve known and unknown risks, uncertainties and other factors that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities may not be achieved. A variety of factors, many of which are beyond the control of the Fund, affect the operations, performance and results of the Fund and its business, and could cause actual results to differ materially from current expectations of estimated or anticipated events or results. The reader is cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking information as there can be no assurance that actual results will be consistent with such forward-looking information. These risks include, but are not limited to the risk factors described in the Fund's continuous disclosure materials from time to time, available on SEDAR+ at www.sedarplus.ca.

Information contained in forward-looking statements is based upon certain material assumptions that were applied in drawing a conclusion or making a forecast or projection, including the perceptions of management of the Fund of historical trends, current conditions and expected future developments, as well as other considerations that are believed to be appropriate in the circumstances, including that the net proceeds from the transaction will be used as described herein.

These forward-looking statements are made as of the date of this news release and, except as expressly required by law, the Fund undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

SOURCE Padlock Euro Storage Fund I