- Developing modern, family-friendly sites in Canada
- Focusing on an industry that coronavirus has impacted positively
- RV use is growing at around 10% a year, while 90% of campgrounds are reporting increasing demand
What Pacific Frontier Investments does:
Pacific Frontier Investments Inc (PFI) is a private company focused on developing family-friendly recreational vehicle (RV) parks.
It aims to list on the Toronto venture exchange by way of a reverse takeover deal, in which it will acquire the public-quoted shell Discovery One Investments Corp (CVE: DOIT.P). The transaction is expected to close on or around February 28 this year.
The company aims to build up a network of branded Pathfinder Camp Resorts across Canada, focusing initially on British Columbia. The company buys sites in need of modernization and upgrades them, for example, by adding a swimming pool, playground and wi-fi.
It also upgrades the power facilities to 50 amps, which modern RVs need to run appliances like dishwashers and washing machines.
The company says in Canada, even before the coronavirus (COVID-19) crisis, the RV market was already worth C$5 billion and the pandemic has potentially boosted it further as sales of the vehicles are growing as people want to take domestic resort holidays rather than get on a plane.
How is it doing:
Last year, Pacific Frontier acquired three parks in British Columbia, one of which is already up and running and 100% occupied this winter, while the other two are undergoing renovations and will be open in the spring.
In December, the group closed two acquisitions of sites in the lower mainland of British Columbia which offers a favorable climate and is suitable for popular winter stay programs.
The Agassiz / Harrison camp will offer short term, full hook-up RV pads as well as unique hard roof cabin accommodation, while the Downtown Fort Langley site is a short walk across the Fraser River bridge from Fort Camping, which is now part of the Pathfinder Camp Resorts offering. It hosts over 155 rentable short term RV pads, as well as tent cabins.
The same month, the company said it had taken possession of an RV park and campground in Parksville, British Columbia on Vancouver Island.
This is a 12-acre site, which lies on the Englishman River with access to several swimming holes and a sandy beach area. It has 77 full hook-up sites, 21 water and electric sites and 62 un-serviced tenting sites
On the financing front, Pacific Frontier announced last year that it had increased a previously announced placing to C$4.9 million from C$2.1 million, offering up to 70 million shares at C$0.07 each.
The proceeds will be used to fund the purchase and site upgrades of the RV parks and campgrounds in southern British Columbia and for general working capital, it said.
Looking ahead, the company aims to buy two further sites each year to expand the network, so by the end of 2021 it aims to have five locations that are operational.
- Going public via the reverse takeover
- Resorts becoming operational and taking bookings
- Further acquisition of sites
What the boss says:
Speaking to Proactive in November, 2020, chief executive and founder of Pacific Frontier Investments Joe Bleakley noted: "There are five RVs for every RV spot in North America and that was pre-COVID-19 numbers.
"We've seen record numbers of RV sales this year and now we've seen record numbers of backlogs reported by RV manufactures so the trend is forecasted to continue and we think the industry that was already under tremendous pressure having campsite chronically overbooked and hard to get is going to be under even more pressure in years to come."
Contact the author at [email protected]