Company registration number 13928831 (England and Wales)
CILS1 UK HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
CILS1 UK HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mr J S Goldstein
Mr T M Brazier
Mr J Carter
(Appointed 5 June 2025)
Secretary
Ocorian (UK) Limited
Company number
13928831
Registered office
72 Welbeck Street
London
England
W1G 0AY
Auditor
Ernst & Young LLP
144 Morrison Street
Edinburgh
EH3 8EB
Bankers
Barclays Bank Plc
1 Churchill Place
London
E14 5HP
Solicitors
Taylor Wessing LLP
5 New Street Square
London
EC4A 3TW
CILS1 UK HOLDINGS LIMITED
CONTENTS
Page
Directors' report
1 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group statement of financial position
9
Group statement of changes in equity
10
Group statement of cash flows
11
Notes to the Group financial statements
12 - 32
Parent company statement of financial position
33
Parent company statement of changes in equity
34
Notes to the parent company financial statements
35 - 39
CILS1 UK HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 1 -

The Directors present their annual report and audited financial statements for CILS1 UK Holdings Limited (the "Company") and its subsidiaries (together the "Group") for the year ended 31 December 202 5.

In preparing this report, the Company has taken advantage of the exemption provided by section 414B of the Companies Act 2006 in not preparing a Strategic Report.

Principal activities

The principal activity of the Group is the rental of commercial logistics property.

During 202 5 the Group continued to focus on leasing its remaining vacant units. The Group manages the operation of seven completed sites to maximise commercial rental income. The total completed area is 3,19 0,819 sq.ft.

Results and dividends

The results for the year are set out on page 8.

No dividends were paid. The D irectors do not recommend payment of a final dividend.

Donations

There were no charitable donations made during the year.

Business performance

The operational outlook of the completed leasing business is positive in having achieved good long term tenants at Northampton, Leighton Buzzard, Belvedere, Ellesmere Port, Sherburn and Peterborough with 6 9% of the fully completed portfolio having been let as at the year end.

Key performance indicators

The consolidated loss before taxation of the business is £22.2m (202 4: £32m loss). This is primarily made up of finance costs totalling £29.1m (2024: £39.5m). The Directors believe that going forward maximising efficiencies in managing costs and increasing revenue will increase the profitability going forward. The Directors believe that as the occupancy of the completed leasehold units increase, this will increase profitability.

Rental revenue during the period is £14.3m (202 4: £9.2m) which includes revenue generated from four of the completed sites. This comprises 6 9% occupancy across all 7 sites. The expected fully occupied rent across all sites on full portfolio completion is £27.3m per annum.

Future developments

The Group intends to increase the number of leased commercial units to full occupancy. The Directors consider that the Group will continue to perform its principal activities for the foreseeable future.

The Directors have considered the ongoing geo-political conflicts and have considered any potential impact, and do not anticipate an y major issues that would have a material impact on the ongoing activities of the business.

The Directors will continue to monitor the impact of the macroeconomic risks currently facing the Group and will take appropriate action as necessary to ensure the Company continues to operate as a going concern.

Expected rental revenue growth is a good indication of the quality of the commercial units being offered and the desirability of the product class in the locations acquired. The expected gross leasable area of the portfolio on full completion is 3.1m sq. ft.

Directors

The Directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr C N Saverino
(Resigned 6 June 2025)
Mr J S Goldstein
Mr T M Brazier
Mr J Carter
(Appointed 5 June 2025)
CILS1 UK HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 2 -
Qualifying third party indemnity provisions

The Company has made qualifying third party indemnity provisions for the benefit of its Directors during the year.

Going concern

The Directors have conducted an assessment of the Company's ability to continue as a going concern for the financial year ended 31 December 2025, considering the available resources and expected obligations up until 30 April 2027, being the going concern period. The Company is part of an Extended Group which also includes CI Logistics Strat 1 LP, CI Logistics Strat 1 GP Limited, CILS1 UK Holdings Limited and its subsidiaries (collectively referred to as the 'Extended Group’). The directors have assessed that the going concern of the Company is dependent upon the going concern of the Extended Group. At the Extended Group level, the Directors have prepared a detailed forecast of expected operational outgoings, incorporating severe but plausible downside risks, and has considered projected operational income, expenditure, and financing costs up to 30 April 2027. This assessment reflects the current economic environment and recent geopolitical developments in the Middle East. As at 31 December 2025, the Company has net current assets of £1,389,923 (2024: net current liabilities of £259,703) and net assets of £95,9 81,211 (2024: £50,408,52 1). As at 31 December 2025, the Group had net current liabilities of £1,698,539 (2024: £388,841,480) and net assets of £95,981,210 (2024: £50,408,520). The Company’s activities are funded by capital from its shareholder, CILS1 UK Holdings Limited, which in turn is funded by capital from CI Logistics Strat 1 LP (the “Partnership”).

The Directors have determined that a material uncertainty exists regarding the Extended Group’s ability to secure additional commitments from the Limited Partners of CI Logistics Strat 1 LP to fund the identiﬁed cash shortfall during the going concern period, as well as any potential further funding required to meet covenant tests immediately thereafter. This uncertainty may cast significant doubt over the Company’s ability to continue as a going concern and, as a result, its ability to realise its assets and settle liabilities in the normal course of business.

Notwithstanding this material uncertainty, the Directors have a reasonable expectation that the Extended Group will obtain additional capital from its Limited Partners to fund the identified cash shortfall during the going concern period and will continue to receive support to meet any future cash requirements. This expectation is supported by the financial outlook of the Limited Partners, their previous track record of providing financial support, and their demonstrated willingness to protect their invested economic interest - evidenced by multiple increases in their commitments in recent years, most recently in November 2025 taking the Limited Partners commitment to £323,339,894. For these reasons, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for a period up until 30 April 2027, being the going concern period, and therefore considers it appropriate to prepare the financial statements on a going concern basis.

Creditor payment terms

The Group's current policy concerning the payment of trade creditors is to:

- settle the terms of payment with suppliers when agreeing the terms of each transaction;

- ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts; and

- pay in accordance with the Company's contractual and other legal obligations.

The Group's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).

Auditor

In accordance with the Company's articles, Ernst & Young LLP were re-appointed as auditors. The auditors, Ernst & Young LLP, are deemed to be reappointed under section 485 of the Companies Act 2006.

Statement of disclosure to auditor

So far as each person who is a Director of the Company at the date of approving this report is aware, there is no relevant audit information, being information needed by the auditor in connection with preparing its report, of which the auditor is unaware. Having made enquiries of fellow Directors and the Company's auditor, each Director has taken all steps that he is obliged to take as a Director of the Company in order to make himself aware of any relevant audit information and to establish that the auditor is aware of that information.

Subsequent events

Details of subsequent events are set out in note 26.

CILS1 UK HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 3 -
On behalf of the board
Mr T M Brazier
Director
1 April 2026
CILS1 UK HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 4 -

The Directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the Group financial statements in accordance with UK-adopted International Accounting Standards (UK-IAS), and the parent financial statements in accordance with applicable law and United Kingdom Accounting Standards including FRS 101 "Reduced Disclosure Framework" (United Kingdom Generally Accepted Accounting Practice). Under Company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and their profit or loss for that period.

In preparing these consolidated financial statements, UK-IAS requires that Directors:

- select suitable accounting policies and the n apply them consistently;

- make judgements and accounting estimates that are reasonable and prudent;

- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

- comply with the requirements of the Companies Act 2006 with respect to accounting records and of the preparation of financial statements; and

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

In preparing the parent company financial statements, the Directors are required to:

- select suitable accounting policies and then apply them consistently;

- make judgements and accounting estimates that are reasonable and prudent;

- state whether FRS 101 Reduced Disclosure Framework has been followed, subject to any material departures disclosed and explained in the financial statements; and

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company’s transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

CILS1 UK HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CILS1 UK HOLDINGS LIMITED
- 5 -
Opinion

We have audited the financial statements of CILS1 UK Holdings Limited (‘the Parent Company’) and its subsidiaries (the ‘Group’) for the year ended 31 December 2025 which comprise the Group Statement of Comprehensive Income, the Group and Parent Company Statement of Financial Position, the Group Statement of Cash Flows, the Group and Parent Company Statement of Changes in Equity and the related notes 1 to 32, including a summary of material accounting policy information. The financial reporting framework that has been applied in the preparation of the Group financial statements is applicable law and UK adopted international accounting standards. The financial reporting framework that has been applied in the preparation of the Parent Company financial statements is applicable law and United Kingdom Accounting Standards, including FRS 101 “Reduced Disclosure Framework” (United Kingdom Generally Accepted Accounting Practice).

In our opinion:

- the financial statements give a true and fair view of the Group’s and of the Parent Company’s affairs as at 31 December 2025 and of the Group’s loss for the year then ended;

- the Group financial statements have been properly prepared in accordance with UK adopted international accounting standards;

- the Parent Company financial statements have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

- the financial statements have been prepared in accordance with the requirements of the Companies Act 2006

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Material uncertainty relating to going concern

We draw attention to note 1.4 in the financial statements, which indicates that CILS1 UK Holdings Limited (‘the Parent Company’) and its subsidiaries (collectively the ‘Group’), along with CI Logistics Strat 1 LP and CI Logistics Strat 1 GP Limited (collectively the ‘Extended Group’), has a material uncertainty regarding its ability to continue as a going concern. The material uncertainty relates to the Extended Group's ability to secure additional commitments from the Limited Partners of CI Logistics Strat 1 LP to fund the identified cash shortfall during the going concern period, as well as any potential further funding required to meet covenant tests immediately thereafter.

As stated in note 1.4, these events or conditions, along with the other matters as set forth in note 1.4, indicate that material uncertainty exists that may cast significant doubt on the Group’s and the Parent Company’s ability to continue as a going concern.

In auditing the financial statements, we have concluded that the Directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our opinion is not modified in respect of this matter.

Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the Group and the Parent Company’s ability to continue as a going concern.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The Directors are responsible for the other information contained within the annual report.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in this report, we do not express any form of assurance conclusion thereon.

CILS1 UK HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CILS1 UK HOLDINGS LIMITED
- 6 -

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of the other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

- the information given in the strategic report and the Directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and Directors’ report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Group and the Parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or Directors’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

- adequate accounting records have not been kept by the Parent Company, or returns adequate for our audit have not been received from branches not visited by us; or

- the Parent Company financial statements are not in agreement with the accounting records and returns; or

- certain disclosures of Directors’ remuneration specified by law are not made; or

- we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Directors’ responsibilities statement set out on page 3, the Directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Directors are responsible for assessing the Group’s and the Parent Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Group or the Parent Company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect irregularities, including fraud. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.

CILS1 UK HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CILS1 UK HOLDINGS LIMITED
- 7 -

Our approach was as follows:

- We obtained an understanding of the legal and regulatory frameworks that are applicable to the Group and the Parent Company and determined that the most significant are the Companies Act 2006, those relating to its reporting framework being the United Kingdom Generally Accepted Accounting Practice, UK adopted International Accounting Standards and any relevant direct and indirect tax compliance regulation in the United Kingdom.

- We understood how the Group and the Parent Company is complying with those frameworks by making enquiries of management and those responsible for the legal and compliance procedures. We corroborated our enquiries through our review of minutes of board meetings of the Group and Parent Company, as well as validating how policies and procedures are communicated and monitored. We also reviewed any correspondence with the relevant authorities.

- We assessed the susceptibility of the Group’s and the Parent Company’s ﬁnancial statements to material misstatement, including how fraud might occur by making enquiries of management and those charged with governance. Where the risk was considered to be higher, we performed audit procedures in response to the identiﬁed fraud risks. These procedures included testing of speciﬁc accounting journal entries and focussed testing on investments and revenue. These procedures were designed to provide reasonable assurance that the ﬁnancial statements were free from fraud and error. We also considered management’s incentives around improving the performance of the Group and Parent Company, the opportunities available to execute any such actions through management override as well as the controls that the Group and Parent Company have established to address any such risks identiﬁed, including to prevent, deter and detect fraud and the monitoring of such controls by management.

- Based on this understanding we designed our audit procedures to identify noncompliance with such laws and regulations. Our procedures involved supplementing our enquiries of management and those charged with governance as well as review of board meeting minutes of the Group and the Parent Company.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the Company’s member, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company’s member those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s member, for our audit work, for this report, or for the opinions we have formed.

Caroline Mercer (Senior statutory auditor)
for and on behalf of Ernst & Young LLP, Statutory Auditor
Edinburgh
1 April 2026
CILS1 UK HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2025
- 8 -
2025
2024
Notes
£
£
Revenue
3
14,356,885
9,281,085
Other income
2,048
-
Administrative expenses
(7,040,419)
(5,582,898)
Fair value gain on investment properties
9
(372,640)
1,197,035
Operating profit
5
6,945,874
4,895,222
Finance income
6
-
0
2,490,479
Finance costs
7
(29,140,527)
(39,462,719)
Loss before taxation
(22,194,653)
(32,077,018)
Taxation
8
202,823
56,300
Loss and total comprehensive income for the year
20
(21,991,830)
(32,020,718)
Total comprehensive income for the year is all attributable to the owners of the parent company.
The Group has no other comprehensive income for the current financial year other than the results above and, therefore, no statement of other comprehensive income is presented.

The Group statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

The financial statements include the notes presented in pages 12 to 3 2.

CILS1 UK HOLDINGS LIMITED
GROUP STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2025
31 December 2025
- 9 -
2025
2024
Notes
£
£
Non-current assets
Investment property
9
443,170,000
439,250,000
Other non-current receivables
12
648,796
546,608
443,818,796
439,796,608
Current assets
Trade and other receivables
10
484,400
687,018
Derivative financial instruments
13
1,131,092
1
Cash and cash equivalents
11
4,730,062
2,956,271
Restricted cash
11
(20)
2,027
6,345,534
3,645,317
Current liabilities
Trade and other payables
14
5,560,494
10,698,724
Borrowings
16
-
0
379,892,610
Deferred revenue
17
2,483,579
1,895,463
8,044,073
392,486,797
Net current liabilities
(1,698,539)
(388,841,480)
Non-current liabilities
Other non-current payables
15
648,796
546,608
Borrowings
16
345,490,251
-
0
346,139,047
546,608
Net assets
95,981,210
50,408,520
Equity
Called up share capital
18
16
12
Share premium account
19
303,215,402
235,650,886
Retained earnings
20
(207,234,208)
(185,242,378)
Total equity
95,981,210
50,408,520
The financial statements on pages 8 to 32 were approved by the board of directors and authorised for issue on 1 April 2026 and are signed on its behalf by:
Mr T M Brazier
Director
Company registration number 13928831
CILS1 UK HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
- 10 -
Share
capital
Share
premium
account
Retained earnings
Total
Notes
£
£
£
£
Balance at 1 January 2024
8
208,402,484
(153,221,660)
55,180,832
Year ended 31 December 2024:
Loss and total comprehensive income
-
-
(32,020,718)
(32,020,718)
Issue of share capital
18
4
27,248,402
-
27,248,406
Balance at 31 December 2024
12
235,650,886
(185,242,378)
50,408,520
Year ended 31 December 2025:
Loss and total comprehensive income
-
-
(21,991,830)
(21,991,830)
Issue of share capital
18
4
67,564,516
-
67,564,520
Balance at 31 December 2025
16
303,215,402
(207,234,208)
95,981,210

The notes on 12 to 3 2 form part of these group financial statements.

CILS1 UK HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2025
- 11 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
2,944,126
3,209,131
Net cash inflow from operating activities
2,944,126
3,209,131
Investing activities
Construction spend
(206,595)
(1,303,089)
Net cash used in investing activities
(206,595)
(1,303,089)
Financing activities
Proceeds from issue of shares
67,564,520
27,248,402
Bank Loans
350,713,968
1,057,604
Repayment of bank loans
(381,304,047)
-
Derivative cost
(1,688,000)
-
0
Derivative settlement receipts
-
4,302,113
Bank finance costs
(6,283,237)
-
0
Interest paid
(29,968,991)
(33,404,425)
Net cash used in financing activities
(965,787)
(796,306)
Net increase in cash and cash equivalents
1,771,744
1,109,736
Cash and cash equivalents at beginning of year
2,958,298
1,848,562
Cash and cash equivalents at end of year
4,730,042
2,958,298
CILS1 UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
- 12 -
1
Material accounting policies information
General information

CILS1 UK Holdings Limited (the "Company") and its subsidiaries (together, the "Group") owns a logistics real estate portfolio based in the United Kingdom.

The Company is a private company limited by shares incorporated in the United Kingdom on 21 February 202 2 under the Companies Act 2006. The registered office is 72 Welbeck Street, London, W1G 0AY. The Company's principal activities and nature of its operations are disclosed in the Directors' report.

For more information on the Company's subsidiaries please refer to note 1.3.

The average monthly number of persons (excluding Directors) employed by the Group during the year was nil.

The Company is 100% owned by CI Logistics Strat 1 LP, a partnership registered in Jersey.

1.1
Accounting convention

The ﬁnancial statements have been prepared in accordance with UK-adopted International Accounting Standards (UK-IAS) as adopted for use in the United Kingdom and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, except as otherwise stated. The ﬁnancial statements are prepared on a going concern basis and under the historical cost convention except for investment property and derivative ﬁnancial instruments that have been measured at fair value.

1.2
New and amended accounting standards that have been issued but are not yet effective

At the date of authorisation of these financial statements, the Company has not applied the following new and revised IFRS

Accounting Standards that have been issued but are not yet effective:

- Amendments to IFRS 9 and IFRS 7 Financial Instruments (effective from 1 January 2026)

- IFRS 18 Presentation and Disclosures in Financial Statements (effective from 1 January 2027)

- IFRS 19 Subsidiaries without Public Accountability: Disclosures (effective from 1 January 2027)

With the exception of IFRS 18, the effect of which the Directors are currently assessing, it is not expected that the adoption of the standards listed above will have a material impact on the financial statements of the Group in future periods.

CILS1 UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Material accounting policies information
(Continued)
- 13 -
1.3
Consolidation

The consolidated financial statements include those of the Company and its subsidiary undertakings as shown below which are all 100% owned:

- CILS Leighton Buzzard Limited

- CILS Milton Limited

- CILS Ellesmere Port Limited

- CILS Peterborough Limited

- CILS Belvedere Limited

- CILS Barnsley Limited

- CILS Sherburn Limited

All financial statements are made up to 31 December 202 5. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the G roup.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group.

Profits and losses resulting from inter-company transactions that are recognised in assets are also eliminated.

1.4
Going concern

The Directors have conducted an assessment of the Company's ability to continue as a going concern for the financial year ended 31 December 2025, considering the available resources and expected obligations up until 30 April 2027, being the going concern period. The Company is part of an Extended Group which also includes CI Logistics Strat 1 LP, CI Logistics Strat 1 GP Limited, CILS1 UK Holdings Limited and its subsidiaries (collectively referred to as the 'Extended Group’). The directors have assessed that the going concern of the Company is dependent upon the going concern of the Extended Group. At the Extended Group level, the Directors have prepared a detailed forecast of expected operational outgoings, incorporating severe but plausible downside risks, and has considered projected operational income, expenditure, and financing costs up to 30 April 2027. This assessment reflects the current economic environment and recent geopolitical developments in the Middle East. As at 31 December 2025, the Company has net current assets of £1,389,923 (2024: net current liabilities of £259,703) and net assets of £95,981,21 true 1 (2024: £50,408,52 1). As at 31 December 2025, the Group had net current liabilities of £1,698,539 (2024: £388,841,480) and net assets of £95,981,210 (2024: £50,408,520). The Company’s activities are funded by capital from its shareholder, CILS1 UK Holdings Limited, which in turn is funded by capital from CI Logistics Strat 1 LP (the “Partnership”).

The Directors have determined that a material uncertainty exists regarding the Extended Group’s ability to secure additional commitments from the Limited Partners of CI Logistics Strat 1 LP to fund the identiﬁed cash shortfall during the going concern period, as well as any potential further funding required to meet covenant tests immediately thereafter. This uncertainty may cast significant doubt over the Company’s ability to continue as a going concern and, as a result, its ability to realise its assets and settle liabilities in the normal course of business.

Notwithstanding this material uncertainty, the Directors have a reasonable expectation that the Extended Group will obtain additional capital from its Limited Partners to fund the identified cash shortfall during the going concern period and will continue to receive support to meet any future cash requirements. This expectation is supported by the financial outlook of the Limited Partners, their previous track record of providing financial support, and their demonstrated willingness to protect their invested economic interest - evidenced by multiple increases in their commitments in recent years, most recently in November 2025 taking the Limited Partners commitment to £323,339,894. For these reasons, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for a period up until 30 April 2027, being the going concern period, and therefore considers it appropriate to prepare the financial statements on a going concern basis.

CILS1 UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Material accounting policies information
(Continued)
- 14 -
1.5
Revenue

The Group earns revenue from acting as a lessor in operating leases which do not transfer substantially all of the risks and rewards incidental to ownership of an investment property.

Rental income arising from operating leases on investment property is accounted for on a straight-line basis over the lease term and is included in revenue in the income statement due to its operating nature. Initial direct costs incurred in negotiating and arranging an operating lease are recognised as an expense over the lease term on the same basis as the lease income.

Tenant lease incentives are recognised on a straight-line basis over the full term of the lease, or the break clause date. The lease term is the non-cancellable period of the lease together with any further term for which the tenant has the option to continue the lease, where, at the inception of the lease, the Group is reasonably certain that the tenant will exercise that option.

Rent receivables are recognised at their original invoiced value except where the time value of money is material, in which case rent receivables are recognised at fair value and subsequently measured at amortised cost. Refer to accounting policies on financial assets in this note.

For investment property held primarily to earn rental income, the Group enters as a lessor into lease agreements that fall within the scope of IFRS 16. These agreements include certain services offered to tenants (i.e., customers) including common area maintenance services (such as cleaning, security, landscaping and snow removal of common areas), as well as other support services (e.g., reception services, catering and other event related services). The consideration charged to tenants for these services includes fees charged based on a percentage of the rental income and reimbursement of certain expenses incurred. These services are specified in the lease agreements and separately invoiced.

The Group arranges for third parties to provide certain of these services to its tenants. The Group concluded that it acts as an agent in relation to these services as it does not control the specified services before transferring them to the customer. Therefore, the Group records revenue on a net basis.

T he revenue from service charge is not recorded as part of Group's revenue.

1.6
Investment property

Investment property comprises completed property that is held, to earn rental income or for capital appreciation or both. Property held under a lease is classified as investment property when it is held to earn rentals or for capital appreciation or both, rather than for sale in the ordinary course of business.

Investment property comprises commercial warehouse that are not occupied substantially for use by, or in the operations of, the Group, nor for sale in the ordinary course of business, but are held primarily to earn rental income and capital appreciation. These buildings are substantially rented to tenants and not intended to be sold in the ordinary course of business.

Investment property is measured initially at cost, including transaction costs. Transaction costs include transfer taxes, professional fees for legal services and leasing commissions to bring the property to the condition necessary for it to be capable of operating.

Subsequent to initial recognition, investment property is stated at fair value, which reflects market conditions at the reporting date. Gains or losses arising from changes in the fair values of investment property are included in profit or loss in the period in which they arise.

1.7
Tenant deposits

Tenant deposits are initially recognised at fair value and subsequently measured at amortised cost. Any difference between the initial fair value and the nominal amount is included as a component of operating lease income and recognised on a straight-line basis over the lease term.

CILS1 UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Material accounting policies information
(Continued)
- 15 -
1.8
Borrowing costs

Borrowing costs directly attributable to the acquisition or construction of an investment property that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. Capitalisation commences when: (1) the Group incurs expenditures for the asset; (2) the Group incurs borrowing costs; and (3) the Group undertakes activities that are necessary to prepare the asset for its intended use or sale. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing costs incurred in relation to investment property are expensed as incurred.

The interest capitalised is calculated using the Group’s weighted average cost of borrowings after adjusting for borrowings associated with specific developments. Where borrowings are associated with specific developments, the amount capitalised is the gross interest incurred on those borrowings less any investment income arising on their temporary investment. Interest is capitalised from the commencement of the development work until the date of practical completion, i.e., when substantially all of the development work is completed. The capitalisation of finance costs is suspended if there are prolonged periods when development activity is interrupted. Interest is also capitalised on the purchase cost of a site of property acquired specifically for redevelopment, but only where activities necessary to prepare the asset for redevelopment are in progress.

1.9
Cash and cash equivalents

Cash and cash equivalents in the statement of financial position comprise cash at banks, instruments that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value.

Restricted cash consists of amounts held in a bank mandated account which is used to service quarterly debt interest payments and receive rental income.

1.10
Financial assets

Financial assets and liabilities are recognised on the Group’s statement of financial position at fair value or amortised cost when the Group becomes party to the contractual provisions of the instrument. Subsequent measurement depends on the classification and is discussed below.

Financial assets are recognised in the Group's statement of financial position when the Group becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.

At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.

Financial assets held at amortised cost

Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (e.g. trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary. The Group applies the simpliﬁed approach to providing for expected credit losses prescribed by IFRS 9, which permits the use of the lifetime expected loss provision for all trade receivables and contract assets. These estimates are based on historic credit loss experience, adjusted for forward-looking factors speciﬁc to the debtors and macro-economic and speciﬁc country-risk considerations with higher default rates applied to older balances.

In addition, if speciﬁc circumstances exist which would indicate that the receivable is irrecoverable a speciﬁc provision is made. A provision is made against trade receivables and contract assets until such time the Group believes there to be no reasonable expectation of recovery, after which the trade receivable or contract asset balance is written oﬀ.

CILS1 UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Material accounting policies information
(Continued)
- 16 -

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

1.11

Fair value measurements

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place in the principal market for the asset or liability.

Fair value related disclosures for financial instruments and non-financial assets that are measured at fair value or where fair values are disclosed, are summarised in Investment property, note 9 & Derivative financial instruments, note 13.

All assets and liabilities, for which fair value is measured or disclosed in the financial statements, are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities

Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

For assets and liabilities that are recognised in the financial statements at fair value on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

For the purpose of fair value disclosures, the Group has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy, as explained above.

Fair value related disclosures for financial instruments and non-financial assets that are measured at fair value or where fair values are disclosed, are summarised in the following notes:

• Accounting policy disclosures, note 1

• Disclosures for valuation methods, significant estimates and assumptions, note 2

• Investment property, note 9

• Quantitative disclosures of fair value measurement hierarchy, note 23(d)

• Derivatives financial instruments, note 13

1.12
Financial liabilities

The Group recognises financial liabilities when the Group becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.

CILS1 UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Material accounting policies information
(Continued)
- 17 -

Financial liabilities at fair value through profit or loss

Financial liabilities are classified as measured at fair value through profit or loss when the financial liability is held for trading. A financial liability is classified as held for trading if:

- it has been incurred principally for the purpose of selling or repurchasing it in the near term, or

- on initial recognition it is part of a portfolio of identified financial instruments that are managed together and has a recent actual pattern of short-term profit taking, or

- it is a derivative that is not a financial guarantee contract or a designated and effective hedging instrument.

Financial liabilities at fair value through profit or loss are stated at fair value with any gains or losses arising on remeasurement recognised in profit or loss.

Other financial liabilities

Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the

liability is outstanding.

Derecognition of financial liabilities

Financial liabilities are derecognised when, and only when, the Group’s obligations are discharged, cancelled, or they expire.

1.13
Derivative financial instruments

Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured at fair value. Changes in the fair value of the Group’s derivative instruments are recognised immediately in the income statement.

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability. A derivative is presented as a non-current asset o r liability if the remaining maturity of the instrument is more than 12 months and it is not expected to be realised or settled within 12 months. Other derivatives are classified as current.

1.14
Equity instruments
Equity instruments issued by the Company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the Company.
1.15
Share premium
Share premium is classified as equity.
1.16
Taxation

The tax expense represents the sum of the tax provision and deferred tax movement in the year.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

CILS1 UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Material accounting policies information
(Continued)
- 18 -
Deferred tax

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the group has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.17
Leases

Leases in which the Group does not transfer substantially all the risks and rewards incidental to ownership of an asset are classified as operating leases. Rental income arising is accounted for on a straight-line basis over the lease terms and is included in revenue in the statement of profit or loss due to its operating nature. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same basis as rental income.

Contingent rents are recognised as revenue in the period in which they are earned. As at the year end, there were no contingent rents.

1.18
Foreign currency translation

(i) Functional and presentation currency

The Group’s consolidated financial statements are presented in Pound sterling, which is also the parent company’s functional currency. For each entity, the Group determines the functional currency and items included in the financial statements of each entity are measured using that functional currency.

(ii) Transaction and balances

The Group does not have any assets or liabilities denominated in a currency other than Pound sterling at the period end.

Group measures financial instruments such as derivatives and non-financial assets such as investment property at fair value at each balance sheet date.

2
Critical accounting estimates and judgements

In the application of the Group’s accounting policies, the D irectors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors and are considered to be relevant. Actual results may differ from these estimates. The Directors have also made judgements about the going concern of the Group as described in note 1.4.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The following estimates and judgements have had the most significant effect on amounts recognised in the financial statements.

CILS1 UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
2
Critical accounting estimates and judgements
(Continued)
- 19 -

Fair valuation of investment Property

The Group's investment property held, is initially measured at cost including transaction price and subsequently at fair value through profit or loss at the end of the reporting period. Any unrealised gains or losses on this investment is recognised immediately in the income statement.

Fair value is the amount for which an asset could be exchanged, a liability settled, or an equity instrument granted could be exchanged, between knowledgeable, willing parties in an arm's length transaction.

The fair valuation of the property was carried out by an external third-party valuation expert for inclusion in the audited financial statements where a significant period of time had elapsed since its acquisition date as part of quantifying the investment property held by the Group.

Investment property is measured based on estimates prepared by independent real estate valuation experts, except where such values cannot be reliably determined.

An estimated rental value (ERV) was assessed for all seven sites using a combination of in-place rents and suitable comparables for each site. ERV's ranged between £7.03 - £16.95 per sq ft. Capitalisation rates used ranged from 4.9 7% to 6.13%. This approach capitalises current and future cash flows at an appropriate capitalisation rate based on comparable evidence. Please refer to note 9 for sensitivity analysis.

3
Revenue
2025
2024
£
£
Revenue analysed by class of business
Rental income (excluding straight-lining of lease incentives)
16,534,179
10,527,248
Straight-lining of lease incentive (at earlier of lease end date or break clause date)
(2,177,294)
(1,246,163)
14,356,885
9,281,085
There is only one operating segement. All revenue arose within the United Kingdom.

The Group has granted incentives such as rent-free periods to new tenants. The total unamortised portion of rent-free periods is, as follows:

2025
2024
£
£
Cumulative amount of lease incentive not fully amortised
14,611,964
11,342,598
4
Other leasing information
Lessor

The Group earns rental income from leasing out its completed logistics space to commercial tenants. The future minimum lease payments in relation to non-cancellable operating leases are as follows:

CILS1 UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
4
Other leasing information
(Continued)
- 20 -
2025
2024
£
£
Within one year
12,801,185
10,299,868
One to two years
16,672,042
10,395,239
Two to three years
16,676,200
10,352,979
Three to four years
16,676,200
10,160,633
Four to five years
14,853,812
10,160,633
Over five years
51,473,613
43,544,611
Total undiscounted lease payments receivable
129,153,052
94,913,963
5
Operating profit
2025
2024
Operating profit for the year is stated after charging/(crediting):
£
£
Asset management services
1,046,301
761,747
Fees payable to the company's auditor for the audit of the Company's financial statements and its subsidiaries
229,572
480,129
Fees for taxation advisory services
75,605
129,762
Fees for marketing services
111,694
150,934

The Group had no employees (excluding D irectors). The Group incurred no staff costs (202 4: £Nil), including Directors' remuneration, in 202 5.

6
Finance income
2025
2024
£
£
Interest income from derivatives
-
2,490,479

Total interest income for financial assets that are not held at fair value through the income statement is £nil (202 4: £2,490,479).

7
Finance costs
2025
2024
£
£
Interest on bank overdrafts and loans
26,112,662
32,890,021
Unrealised loss on derivatives
556,909
4,332,980
Amortised finance costs
2,470,956
2,239,718
Total interest expense
29,140,527
39,462,719
CILS1 UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 21 -
8
Income tax expense
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
(202,823)
(56,300)

The charge for the year can be reconciled to the profit per the income statement as follows:

2025
2024
£
£
Loss before taxation
(22,194,653)
(32,077,018)
Expected tax credit based on a corporation tax rate of 25.00% (2024: 25.00%)
(5,548,663)
(8,019,255)
Fair value movements on investment properties not recognised for tax purposes
93,160
(299,259)
Anti hybrid disallowances
3,400,154
3,998,509
Corporate interest restriction
4,374,275
4,330,339
Capital allowance relief
(2,125,018)
(1,088,708)
Losses relief available
-
14,075
Group relief utilised
-
(152,547)
Adjustment to tax charge in respect of prior years
(202,823)
(56,300)
Current year tax credit
-
1,216,846
Deferred tax asset not recognised
(193,908)
-
Taxation credit for the year
(202,823)
(56,300)

The Group has unutilised carried forward tax losses and temporary differences of £164,122,249 as at 31 December 2025 (2024: £19,384,830). No deferred tax asset has been recognised on this amount as the Company cannot be certain that there will be taxable profits arising within its residual business from which the future reversal of the deferred tax asset could be deducted.

9
Investment property
2025
2024
£
£
Cost
At 1 January
439,250,000
432,950,000
Addition of construction costs
206,595
1,303,088
Unrealised gain/(loss) at fair value through profit or loss
(372,640)
1,197,035
Addition of capitalised lease incentive
4,086,045
3,784,911
Addition of capitalised other costs
-
14,966
As at 31 December
443,170,000
439,250,000
CILS1 UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
9
Investment property
(Continued)
- 22 -
The value of the Investment property as at 31 December 2025, based on the historical cost basis is £568,461,508 (2024: £567,349,930).
As at 31 December 2025, investment property comprises completed property. All property under development reached practical completion in 2023. All property is to be held, to earn rentals or for capital appreciation or both.
Investment property comprises commercial warehouses that are not occupied substantially for use by, or in the operations of the Group, nor for sale in the ordinary course of business, but are held primarily to earn rental income and capital appreciation. These buildings are substantially rented to tenants and not intended to be sold in the ordinary course of business.
Investment property is measured initially at cost, including transaction costs. Transaction costs include transfer taxes and professional fees for legal services.
Under the £349.9m Group loan facility agreement signed 19 November 2025, held by the Company, with Kohlberg Kravis Roberts & Co. L.P. (via KREF GBP Lending XVIII LP and ROX LL Europe (Funded V) DAC), the debt is secured over the investment property of the Group.
The illustrative calculations of a valuation considered to be compliant with the principals of RICS Valuation - Professional Standards 2022, were carried out by CBRE Limited as at 31 December 2025 (2024: CBRE Limited). The valuers have prepared the calculations using the basis of fair value as at the valuation date pursuant to IFRS 13 - Fair Value Measurement.
An estimated rental value (ERV) was assessed for all seven sites using a combination of in-place rents and suitable comparables for each site. ERV's ranged between £7.03 - £16.85 per sq ft. Capitalisation rates used ranged from 4.97% to 6.13%. This approach capitalises current and future cash flows at an appropriate capitalisation rate based on comparable evidence.
An analysis of the fair values of investment property recognised in the Group statement of financial position by level of the fair value measurement hierarchy has resulted in all investment property being UK logistics property within the level 3 category.
Losses recorded in the income statement for fair value measurements are categorised as UK industrial assets within Level 3 of the fair value hierarchy amount to £372,640 (2024: gain of £1,197,035) and are presented in the consolidated income statement as ‘Fair value gains/(loss) on investment properties'. There have been no transfers of investment properties between different levels.
The key unobservable inputs made in determining the fair values are estimated rental value (ERV) and capitalisation rates.
An increase of £0.50 in the ERV applied to the portfolio will increase the fair value of the portfolio by £20,255,000 and consequently increase the Group's reported income from unrealised gains on investments. A decrease of £0.50 in the ERV will decrease the fair value of the portfolio by £20,365,000 and reduce the Group's income.
An increase of 0.5 per cent in the capitalisation rate applied to the portfolio will decrease the fair value of the portfolio by £39,115,000 and consequently decrease the Group's reported income from unrealised gains on investments. A decrease of 0.5 per cent in the capitalisation rate will increase the fair value of the portfolio by £51,285,000 and increase the Group's income.
CILS1 UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 23 -
10
Trade and other receivables
2025
2024
£
£
Trade receivables
-
0
4,042
VAT receivable
389,361
81,856
Other receivables
76,505
562,170
Prepayments
18,534
38,950
484,400
687,018

All Trade and other receivable amounts are interest-free and unsecured.

All VAT receivable was collected in full post period end.

See note 23(b) on credit risk of trade receivables, which explains how the Group manages and measures credit quality of receivables that are neither past due nor impaired.

11
Cash and cash equivalents
2025
2024
£
£
Cash at bank
4,730,062
2,956,271
Restricted cash
(20)
2,027
4,730,042
2,958,298

Cash at bank and on hand consists of interest bearing deposits held at banks. Interest is earned at floating rates based on daily bank deposit rates. All deposits are held with banks with a credit rating of B or above, as per the Moody's credit agency credit rating.

Restricted cash consists of amounts held in a bank mandated account which is used to service quarterly debt interest payments and receive rental income.

12
Deposits
Non-current
2025
2024
£
£
Tenant deposits
648,796
546,608
648,796
546,608
CILS1 UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 24 -
13
Derivative financial instruments
2025
2024
£
£
Value of derivative instrument as at 31 December
1,131,092
1
Associated derivative costs deferred
-
-
1,131,092
1

In November 2025 the previous cap matured and CILS1 UK Holdings Limited purchased a new three year interest rate cap, capping the total interest payable at 6.75%. The interest rate cap was purchased on 20 November 2025 to hedge 100% of the associated interest rate risk with the £349.9m loan facility agreement, with Kohlberg Kravis Roberts & Co. L.P. (via KREF GBP Lending XVIII LP and ROX LL Europe (Funded V) DCA), capping the underlying SONIA rate at 4%. The notional value hedged is a maximum of £349,890,000.

14
Trade and other payables
2025
2024
£
£
Trade payables
682,913
272,612
Contractor retentions payable
999,042
2,658,436
Accruals
325,546
744,155
Social security and other taxation
879,835
494,034
Loan interest accrued
2,673,158
6,529,487
5,560,494
10,698,724

All current trade payables are payable within 12 months of the balance sheet date.

The Loan interest accrual includes amounts accrued from 20 November 2025 to 31 December 202 5 in relation to the bank loans.

15
Other non-current payables
2025
2024
£
£
Tenant deposits
648,796
546,608
648,796
546,608
CILS1 UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 25 -
16
Borrowings
Current
Non-current
2025
2024
2025
2024
£
£
£
£
Borrowings held at amortised cost:
Bank loans
-
380,480,077
349,890,000
-
Unamortised finance costs
-
(587,467)
(4,399,749)
-
-
379,892,610
345,490,251
-

On 19 November 2025, the Group signed a £349.9m loan facility agreement, with Kohlberg Kravis Roberts & Co. L.P. (via KREF GBP Lending XVIII LP and ROX LL Europe (Funded V) DAC), the debt is secured over the investment property of the Group. This allowed the previous bank loan balance, due to Blackstone (via Claus Investments S.a.r.l) as at that date to be repaid in full. The initial facility terms is for 3 years with the option to extend annually for the remaining two years. The facility is secured against seven completed sites. As at the year end, £2,673,158 (2024: £6,529,487) of accrued loan interest is recognised within current liabilities.

Interest is payable at a 2.75% interest margin plus the 3 month SONIA rate. Interest is payable quarterly an d capital repayable at the end of the term. The lender finance is subject to a 85% loan-to-value (LTV) default covenant and a tiered debt yield covenant from 5.75% to 6.75%. In addition, there is a 80% LTV or 7% debt yield cash trap covenant. The 85% LTV covenant test is applicable from August 2026 following an initial 9-month holiday, while the 5.75% debt yield covenant test becomes applicable in May 2027. The Group was compliant with all covenants as at the year end.

Unamortised finance costs include £4,399,749 (2024: £587,467) that will be amortised until 18 November 2028. The Company purchased a three year interest rate cap in November 2025, for the group facility, to hedge the interest rate risk, capping the total interest payable at 4%.

Changes in liabilities arising from financing activities
1 January 2025
Cash flows
Other movements
Change in fair value
31 December 2025
£
£
£
£
£
Interest-bearing loans and borrowings
379,892,610
(30,590,078)
(3,812,281)
-
345,490,251
379,892,610
(30,590,078)
(3,812,281)
-
345,490,251
1 January 2024
Cash flows
Other movements
Change in fair value
31 December 2024
£
£
£
£
£
Interest-bearing loans and borrowings
376,595,291
1,057,604
2,239,715
-
379,892,610
376,595,291
1,057,604
2,239,715
-
379,892,610
CILS1 UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 26 -
17
Deferred revenue
2025
2024
£
£
Deferred revenue in relation to rental income
2,483,579
1,895,463
18
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Authorised
Ordinary share of £1 each
16
12
16
12
Issued and fully paid
Ordinary share of £1 each
16
12
16
12

There are no other class of shares held by investors.

Please refer to note 19 for amounts issued as share premium during the year.

19
Share premium account
2025
2024
£
£
At the beginning of the year
235,650,886
208,402,484
Issued during the year
67,564,516
27,248,402
At the end of the year
303,215,402
235,650,886

During the year, CI Logistics Strat 1 LP provided the Company with funding amounts totaling £67,564,520 (2024: £27,248,406) which were unsecured, interest free and repayable on demand. During the year the amounts were converted to equity, consisting of a total of 4 equity shares of £1 each issued at a total premium of £67,564,516 (2024: 4 equity shares of £1 each issued at a total premium of £27,248,402).

20
Retained earnings
2025
2024
£
£
At the beginning of the year
(185,242,378)
(153,221,660)
Loss for the year
(21,991,830)
(32,020,718)
At the end of the year
(207,234,208)
(185,242,378)

The retained earnings figure represents cumulative profits and losses net of dividends paid and other adjustments. These are shown in the statement of changes in equity on page 10.

CILS1 UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 27 -
21
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel, including Directors, is £nil (2024: £nil) in aggregate for each of the categories specified in IAS 24 Related Party Disclosures.

Other information

Transactions between the Company and CI Logistics Strat 1 LP

CI Logistics Strat 1 LP, the immediate parent provided the Company with temporary funding amounts totalling £67,564,520 throughout the year ended 31 December 2025, which were unsecured, repayable on demand and interest free.

This full amount was converted into 4 equity shares of £1 each in the Company at a total premium of £67,564,516.

Transactions between the Company and other members of the Group
The Company provided £95,610,886 (2024: £5,481,000) of funding to other members of the Group during the year which was capitalised prior to the reporting date.
2025
2024
£
£
CILS Milton Limited
17,211,645
185,000
CILS Leighton Buzzard Limited
22,473,365
425,000
CILS Ellesmere Port Limited
26,732,249
1,600,000
CILS Peterborough Limited
6,000,885
830,000
CILS Belvedere Limited
10,439,993
635,000
CILS Barnsley Limited
7,105,084
701,000
CILS Sherburn Limited
5,647,665
1,105,000
95,610,886
5,481,000
CILS1 UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
21
Related party transactions
(Continued)
- 28 -
As at the year end there is a balance of £315,000 (2024: £21,233,548) due from members of the Group relating to finance costs funded by the Company on behalf of the subsidiary entities.
2025
2024
£
£
CILS Milton Limited
315,000
2,027,977
CILS Leighton Buzzard Limited
-
5,703,737
CILS Ellesmere Port Limited
-
4,168,033
CILS Peterborough Limited
-
1,168,777
CILS Belvedere Limited
-
1,424,737
CILS Barnsley Limited
-
2,800,394
CILS Sherburn Limited
-
3,939,893
315,000
21,233,548
22
Ultimate controlling party

CILS1 UK Holdings Limited is 100% owned by CI Logistics Strat 1 LP, a partnership incorporated in Jersey.

The general partner of CI Logistics Strat 1 LP is CI Logistics Strat 1 GP Limited, an entity incorporated in Jersey. The financial statements of these entities are not publicly available. ACZ Investments LP and UKLP Holding LP, the two limited partners of CI Logistics Strat 1 LP, equally share ultimate control of the Company and the D irectors consider there to be no ultimate controlling party of the immediate parent.

CILS1 UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 29 -
23
Financial risk management

In pursuing its objectives, the Group holds financial instruments which comprise of:

- Cash and cash equivalents;

- Trade and other receivables;

- Derivatives;

- Borrowings; and

- Other payables.

The main risks arising from holding the Group's financial instruments are detailed below together with the policies adopted to manage the risk.

(a) Market risk

(i) Price risk

Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of change in market prices (other than those arising from interest rate risk or currency risk) whether those changes are caused by factors specific to the individual financial instruments or its issue, or factors affecting similar financial instruments traded in the market.

The Group is not exposed to any price risk.

(ii) Interest rate risk

Interest rate risk arises from the possibility that changes in interest rates will affect future cash flows or the fair values of financial instruments. The Group's income and operating cash flows are not directly dependent on changes in interest rates. The Group's cash at bank earns a nominal rate of interest.

The Group has an interest rate cap in place which caps the interest rate of financing facility at 6.75%. The termination date of the cap is 20 November 2028.

(b) Credit risk

The Group takes on exposure to credit risk, which is the risk that one party will cause a financial loss for the other party by failing to discharge an obligation.

In respect of the financial assets of the Group at the year end, which comprise of cash and cash equivalents and trade and other receivables, the Group's exposure to credit risk arises through default of counter parties with maximum exposure equal to the carrying value of these instruments. The Group's cash is held with Barclays Bank Plc, which has a credit rating of Baa2 with Moody's. On this basis, the Directors consider the credit risk for cash and cash equivalents and trade and other receivables to be low, however continue to monitor this rating and any other information which may cause an increase to risk.

The maximum credit risk exposure of the Group at the year end was £6,345,534 (2024: £3,645,317).

(c) Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group's approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group's reputation.
As part of its overall liquidity management, the Group maintains sufficient levels of cash to meet its working capital requirements, by continuously monitoring forecast and actual cash flows. CILS1 UK Holdings Limited receives funding from its parent undertaking CI Logistics Strat 1 LP which in turn has an unfunded commitment of £12m as at 31 December 2025.
A summary table of the undiscounted contractual cash flow maturity profile of financial assets and liabilities presented below is used by the Group to manage liquidity risks:
CILS1 UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
23
Financial risk management
(Continued)
- 30 -
Within 1 year
1 to 5 years
> 5 years
Total
As at 31 December 2025
£
£
£
£
Financial assets:
Cash and cash equivalents
4,730,042
-
-
4,730,042
Trade and other receivables
484,400
-
648,796
1,133,196
Financial derivatives
1,131,092
-
-
1,131,092
6,345,534
-
648,796
6,994,330
Financial liabilities:
Trade and other payables
2,887,336
-
648,796
3,536,132
Contractual loan interest
21,693,180
40,896,979
-
62,590,159
Interest-bearing loans and borrowings
349,890,000
-
349,890,000
24,580,516
390,786,979
648,796
416,016,291
Within 1 year
1 to 5 years
> 5 years
Total
As at 31 December 2024
£
£
£
£
Financial assets:
Cash and cash equivalents
2,958,298
-
-
2,958,298
Trade and other receivables
687,018
-
546,608
1,233,626
Financial derivatives
1
-
0
-
1
3,645,317
-
546,608
4,191,925
Financial liabilities:
Trade and other payables
4,169,237
-
546,608
4,715,845
Contractual loan interest
7,882,940
-
-
7,882,940
Interest-bearing loans and borrowings
380,480,078
-
-
380,480,078
392,532,255
-
546,608
393,078,863
(d) Fair value risk
Set out below is a comparison by class of the carrying amounts and fair value of the Group's financial instruments, other than those with carrying amounts that are reasonable approximations of fair values:
2025
2024
Carrying amount
Fair value
Carrying amount
Fair value
Financial liabilities for which fair values are disclosed:
£
£
£
£
Interest-bearing loans and borrowings
345,490,251
345,490,251
379,892,610
379,892,610
345,490,251
345,490,251
379,892,610
379,892,610
CILS1 UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
23
Financial risk management
(Continued)
- 31 -
2025
2024
Carrying amount
Fair value
Carrying amount
Fair value
Financial assets measured at fair value:
£
£
£
£
Financial derivatives
1,131,092
1,131,092
1
1
1,131,092
1,131,092
1
1
The fair value of the Group's derivatives categorised by IFRS 13 levels of the fair value hierarchy are as follows:
Level 1
Level 2
Level 3
Total
£
£
£
£
As at 31 December 2025
Financial derivatives
-
1,131,092
-
1,131,092
-
1,131,092
-
1,131,092
Level 1
Level 2
Level 3
Total
£
£
£
£
As at 31 December 2024
Financial derivatives
-
1
-
1
-
1
-
1
24
Cash generated from group operations
2025
2024
£
£
Loss for the year before taxation
(22,194,653)
(32,077,018)
Adjustments for:
Finance costs
29,140,527
39,462,718
Finance income
-
(4,301,595)
Fair value loss/(gain) on investment properties
372,640
(1,197,035)
Lease incentives
(4,086,045)
(3,820,392)
Movements in working capital:
Decrease in trade and other receivables
205,866
5,448,458
Decrease in trade and other payables
(1,079,077)
(1,531,378)
Increase in deferred revenue outstanding
584,868
1,225,373
Cash generated from operations
2,944,126
3,209,131
CILS1 UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 32 -
25
Subsequent events

On 20 March 2026 the Company provided written notice to terminate the Asset Management Agreements relating to Project Carbon with Firethorn Investment Management Ltd. The notice period is three months and the exit fee is equivalent to one year of asset management fees.

CILS1 UK HOLDINGS LIMITED
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2025
31 December 2025
- 33 -
2025
2024
Notes
£
£
Non-current assets
Investments
28
94,591,288
29,434,676
Other receivables
31
-
0
21,233,548
94,591,288
50,668,224
Current assets
Derivative financial instruments
30
1,131,092
1
Cash and cash equivalents
623,114
2,773
Restricted cash
(20)
2,027
1,754,186
4,801
Current liabilities
Trade and other payables
32
364,263
264,504
Net current assets/(liabilities)
1,389,923
(259,703)
Net assets
95,981,211
50,408,521
Equity
Called up share capital
18
16
12
Share premium account
303,215,402
235,650,886
Retained earnings
(207,234,207)
(185,242,377)
Total equity
95,981,211
50,408,521

As permitted by true s408 Companies Act 2006, the c ompany has not presented its own income statement and related notes. The c ompany’s loss for the year was £2 1,991,830 (2024: £31,128,183).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements include the notes presented on pages 35 to 39.
The financial statements on pages 33 to 39 were approved by the board of directors and authorised for issue on 1 April 2026 and are signed on its behalf by:
Mr T M Brazier
Director
Company registration number 13928831
CILS1 UK HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
- 34 -
Share capital
Share premium account
Retained earnings
Total
Notes
£
£
£
£
Balance at 1 January 2024
8
208,402,484
(154,114,194)
54,288,298
Year ended 31 December 2024:
Total comprehensive loss
-
-
(31,128,183)
(31,128,183)
Issue of share capital
18
4
27,248,402
-
27,248,406
Balance at 31 December 2024
12
235,650,886
(185,242,377)
50,408,521
Year ended 31 December 2025:
Total comprehensive loss
-
-
(21,991,830)
(21,991,830)
Issue of share capital
18
4
67,564,516
-
67,564,520
Balance at 31 December 2025
16
303,215,402
(207,234,207)
95,981,211

The notes on pages 35 to 39 form part of these parent financial statements.

CILS1 UK HOLDINGS LIMITED
NOTES TO THE COMPANY FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
- 35 -
26
Material accounting policies information
Company information

CILS1 UK Holdings Limited (the "Company") and its subsidiaries (together, the "Group") owns a logistics real estate portfolio based in the United Kingdom.

The Company is a private company limited by shares incorporated in the United Kingdom on 21 February 2023 under the Companies Act 2006. The registered office was changed to 72 Welbeck Street, London, W1G 0AY (previously located at 116 Upper Street, London, United Kingdom, N1 1QP). The Company's principal activities and nature of its operations are disclosed in the Directors' report.

For more information on the Company's subsidiaries please refer to note 29.

The average monthly number of persons (excluding Directors) employed by the Group during the year was nil.

The Company is 100% owned by CI Logistics Strat 1 LP, a partnership registered in Jersey.

26.1
Accounting convention
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to the year presented, unless otherwise stated.
26.2
Basis of accounting
The financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101).
The financial statements are prepared on a going concern basis and under the historical cost convention.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
26.3
Summary of disclosure exemptions
The following exemptions from the requirements of IFRS have been applied in the preparation of these financial statements, in accordance with FRS 101:
• IFRS 7, ‘Financial instruments: Disclosures'.
• Paragraph 38 of IAS 1, ‘Presentation of financial statements' – comparative information requirements in respect of paragraph
79(a)(iv):
• The following paragraphs of IAS 1, ‘Presentation of financial statements':
- 10(d) (statement of cash flows)
- 16 (statement of compliance with all IFRS)
- 38A (requirement for minimum of two primary statements, including cash flow statements)
- 38B-D (additional comparative information)
- 111 (cash flow statement information); and
- 134-136 (capital management disclosures)
• IAS 7, ‘Statement of cash flows'.
• Paragraph 17 of IAS 24, ‘Related party disclosures' (key management compensation).
• The requirements in IAS 24, ‘Related party disclosures', to disclose related party transactions entered into between two or more members of a group.
• Paragraphs 30 and 31 of IAS 8, ‘Accounting Policies, Changes in Accounting estimates and Errors'.
Where relevant, these disclosures have been made in the consolidated financial statements of CILS1 UK Holdings Limited. which are publicly available from the Companies House register.
26.4
Going concern
Refer to the accounting policy set out in note 1.4 of the consolidated financial statements.
CILS1 UK HOLDINGS LIMITED
NOTES TO THE COMPANY FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
26
Material accounting policies information
(Continued)
- 36 -
26.5
Investment in subsidiaries
Investments in subsidiaries are shown at cost less provision for impairment.
26.6
Cash and cash equivalents
Refer to the accounting policy set out in note 1.9 of the consolidated financial statements.
26.7
Financial instruments
Refer to the accounting policies set out in notes 1.10 to 1.12 of the consolidated financial statements.
26.8
Share capital and share premium
Refer to the accounting policy set out in note 1.14 and 1.15 of the consolidated financial statements.
26.9
Taxation
Refer to the accounting policy set out in note 1.16 of the consolidated financial statements.
26.10
Foreign currency
Refer to the accounting policy set out in note 1.18 of the consolidated financial statements.
26.11

Judgements and key sources of estimation uncertainty

In the application of the Company's accounting policies, the Directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The following estimates and judgements have had the most significant effect on amounts recognised in the financial statements.
Impairment of investments and intra group receivables
Investments carrying values are reviewed for impairment if events or changes in circumstances indicate that the carrying amount of an asset or cash-generating unit is not recoverable. Recoverable amount is the higher of fair value, as cashflows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and risks specific to the asset for which the estimates of future cash flows have not been adjusted. For intra group receivables, the Company applies the simplified approach to providing for expected credit losses prescribed by IFRS 9.
CILS1 UK HOLDINGS LIMITED
NOTES TO THE COMPANY FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 37 -
27
Employees
The Company had no employees (excluding Directors). The Company incurred no staff costs, including Director remuneration, in 2025 (2024: Nil).
28
Investments
Current
Non-current
2025
2024
2025
2024
£
£
£
£
Investments in subsidiaries
-
0
-
0
94,591,288
29,434,676
Investment in subsidiary undertakings
Details of the Company's principal operating subsidiaries are included in note 29.
Name of subsidiary
At 1 January 2025
Investment in the year
Impairment in the year
At 31 December 2025
£
£
£
£
CILS Leighton Buzzard Limited
-
22,473,365
3,790,329
18,683,036
CILS Milton Limited
-
17,211,645
4,421,741
12,789,904
CILS Ellesmere Port Limited
-
26,732,249
11,202,221
15,530,028
CILS Peterborough Limited
10,674,222
6,000,885
1,972,410
14,702,697
CILS Belvedere Limited
-
10,439,993
4,411,023
6,028,970
CILS Barnsley Limited
3,120,652
7,105,084
1,454,956
8,770,780
CILS Sherburn Limited
15,639,802
5,647,665
3,201,594
18,085,873
29,434,676
95,610,886
30,454,274
94,591,288
The Company has recognised an impairment loss of £30,454,274 (2024: £22,303,300) during the year ended 31 December 2025. The recoverable amount of the subsidiaries is the value in use. The impairment loss is recognised in the income statement and was calculated by comparing the carrying amount of the investment in subsidiary balance with the recoverable amount of each subsidiary, which is the higher of the value in use and fair value less costs to sell . The most significant factor for the impairment loss in the current year is the fair value loss recognised on the investment property held by the subsidiaries. See Note 9 for sensitivity analysis on inputs to the investment property valuation.
CILS1 UK HOLDINGS LIMITED
NOTES TO THE COMPANY FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 38 -
29
Subsidiaries

Details of the Company's subsidiaries at 31 December 2025 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
CILS Leighton Buzzard Limited
England and Wales
Ordinary
100.00
CILS Milton Limited
England and Wales
Ordinary
100.00
CILS Ellesmere Port Limited
England and Wales
Ordinary
100.00
CILS Peterborugh Limited
England and Wales
Ordinary
100.00
CILS Belvedere Limited
England and Wales
Ordinary
100.00
CILS Barnsley Limited
England and Wales
Ordinary
100.00
CILS Sherburn Limited
England and Wales
Ordinary
100.00

The subsidiary companies all have a registered address at 72 Welbeck Street, London, United Kingdom W1G 0AY. The principal activity of each subsidiary is the leasing of commercial logistics property.

30
Derivative financial instruments
Current
Non-current
2025
2024
2025
2024
£
£
£
£
Value of derivative instrument as at 31 December
1,131,092
1
-
0
-
0

In November 2025 the previous cap matured and CILS1 UK Holdings Limited purchased a new three year interest rate cap, capping the total interest payable at 6.75%. The interest rate cap was purchased on 20 November 2025 to hedge 100% of the associated interest rate risk with the £349.9m loan facility agreement, with Kohlberg Kravis Roberts & Co. L.P. (via KREF GBP Lending XVIII LP and ROX LL Europe (Funded V) DCA), capping the underlying SONIA rate at 4%. The notional value hedged is a maximum of £349,890,000.

31
Other receivables
Non-current
2025
2024
£
£
Amounts owed by fellow group undertakings
-
0
21,233,548
The Company always recognises lifetime ECL (expected credit losses) for amounts owed by fellow undertakings, which are estimated using an analysis of the debtor's current financial position and general economic conditions at the reporting date. The Company recognised an impairment of £nil (2024: £8,602,751).
CILS1 UK HOLDINGS LIMITED
NOTES TO THE COMPANY FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 39 -
32
Trade and other payables
2025
2024
£
£
Trade payables
8,789
1,362
Amounts owed to fellow group undertakings
315,000
-
Accruals
40,474
263,142
364,263
264,504
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