The coronavirus (COVID-19) pandemic has thrown up an array of behavioral shifts across society and commerce and that is one theme we can probably all agree is likely to continue.
One area that was growing and now appears to be accelerating is the recreational vehicle (RV) market, namely motorhomes and caravans, which include living quarters.
By extension, users of such vehicles, despite being free to travel where they will (within reason) still need safe and pleasant places to park up, stay and enjoy their downtime.
Private company Pacific Frontier Investments Inc (PFI), which is aiming to list via a reverse takeover this quarter, is tapping into all this. The company has noted that, in Canada, even before the pandemic struck, the RV market was already worth C$5 billion and sales are now growing further.
But Pacific Frontier is not an RV-focused company as such. Instead, it is building a network of family-focused resorts across Canada. The company has three locations open for business in 2021 - Harrison Hot Springs Agassiz, Fort Langley, Parksville, in British Columbia and a pipeline for future acquisitions.
Proactive recently caught up with the company's CEO and founder Joe Bleakley to find out more about this interesting newcomer.
Proactive: Please can you briefly describe how and why the company was established?
Joe Bleakley (JB): The company was founded in 2019 (pre-COVID-19) based on a decade of solid growth in the RV and campground industry, which was fueled by strong RV sales. PFI recognized several trends at privately owned campgrounds and RV parks. Specifically, the infrastructure is commonly found to be out of date (septic, water, electrical requirements) and the technology side of the business has also failed to evolve. The lack of online booking systems, dynamic pricing, digital marketing and modern-day amenities, such as high-speed wifi, represented a huge opportunity for PFI to enter the space and execute a roll-up strategy.
Proactive: What does the current global pandemic mean for the company and its future, do you think?
JB: In 2020 we saw record RV sales and RV parks and campgrounds were bursting at the seams when the lockdown was lifted. Domestic travel and local vacations have become extremely popular and RV sales in 2021 have been estimated to increase another 21%. It was reported that 30% of all RV sales in 2020 were first time buyers, which shows a significant number of new customers. We anticipate the industry is at the beginning of a long term growth stage.
Proactive: What do you consider to be your greatest achievement (s) to date?
JB: Our incredible team was able to secure and acquire three amazing properties in 2020 as well as raise the required capital for those acquisitions and improvements which are well underway.
Proactive: What newsflow should investors look out for around the company in the next 12 months or so?
JB: PFI is committed to opening three Premier Pathfinder Camp Resorts in spring of 2021 and is currently building an acquisition pipeline to add to our offering. We will be looking to add talented and accomplished individuals to our team as well as exploring different verticals within our realm of expertise. The company also has plans to achieve a public listing early this year.
Contact the author at giles@proactiveinvestors.com