Pathfinder Ventures (TSX-V:RV) Inc has updated on its previously announced acquisition of private recreational vehicle (RV) and self-storage group Black Sheep Income Corp (BSIC), saying the latter's Penticton storage location in British Columbia (BC) was now operating at full capacity.
In the last six months, occupancy of the storage units has been over 95% and Pathfinder plans to add a further 2,800 square feet (sq ft) of rentable storage, the firm also highlighted.
BSIC acquired the Penticton RV and self-storage location two years ago and has consistently improved revenues and net operating income since.
"BSIC was attracted to the specialized container-based storage model given the reduced infrastructure costs versus traditional storage and the flexibility the containers provide," said Pathfinder. "The custom-built storage containers may be deconstructed, flat packed, and shipped to different sites allowing BSIC to maximise flexibility for both demand among its sites and to maximize land value."
READ: Pathfinder Ventures set to enter new markets and bolster executive team with C$4.5 million Black Sheep Income Corp deal
In February 2022, Pathfinder and BSIC entered into a letter of intent (LOI). whereby Pathfinder will acquire a 100% interest in BSIC in a cash and share deal worth C$4.5 million.
BSIC owns and operates one stabilized RV & self-storage business in Penticton and one operating self-storage site with re-development potential in Nanaimo. Pathfinder will also acquire the contracts to buy two existing RV parks and campgrounds, one in Columbia Valley along the Kooteney River, BC and the other in the foothills of the Rocky Mountains of Alberta.
In addition, the founders and management of BSIC, Cathy Butler and Mark O'Donoghue, will join the Pathfinder executive team as chief investment officer (CIO) and chief financial officer (CFO) respectively, and Butler will be appointed as a director at Pathfinder.
"There is a significant demand for RV, boat, and self-storage in growing recreation hubs like Penticton and our plan is to continue to meet and supply the market demand with storage solutions", said Butler, the co-founder and CFA at Black Sheep Income Corp.
Pathfinder Ventures is developing a network of premier branded, upscale, and family-friendly RV parks and campgrounds under the 'Pathfinder Camp Resorts' name.
It currently has three camp resorts located in BC and is focused on growing its network through both acquisitions and new construction.
Contact the writer at giles@proactiveinvestors.com