Pathfinder Ventures signed a letter of intent (LOI) to acquire an RV park in Alberta. The acquisition, valued at CA$10 million, will enhance Pathfinder’s portfolio with its large land area and strategic location near a metropolitan area.
The RV park has over 200 sites, including 187 year-round and 28 seasonal sites. With the potential to add 166 more sites, the park could accommodate up to 400 RVs, expanding Pathfinder’s portfolio of 316 RV sites.
The 48-acre park is expected to generate more than CA$1 million in net operating income (NOI) annually. This acquisition is financed through CA$1 million in cash, a CA$6.5 million first mortgage debt, and a CA$2.5 million vendor take-back (VTB) arrangement.
Located near Alberta’s economic hubs, the RV park experiences high demand for RV camping and workforce housing. This positioning promises robust cash flows and returns supported by favorable market fundamentals.
According to a press release, the acquisition is subject to further due diligence and third-party and regulatory approvals. The transaction is expected to close in October 2024. Additionally, Pathfinder is confident in its ability to complete the process efficiently.
Pathfinder plans to pursue growth opportunities within the RV resort industry. The company anticipates declining interest rates and is expected to increase activity and expansion in 2024.
In addition, Pathfinder management is optimistic about the RV industry’s future. They plan to capitalize on emerging opportunities, leveraging their expertise, strategic partnerships, and innovative solutions to deliver value to stakeholders.
The company provides premium RV camping experiences. Its management delivers exceptional hospitality and modern amenities to outdoor enthusiasts with a portfolio of strategically located resorts that offer memorable RV vacations.
This acquisition will strengthen Pathfinder’s position in the RV resort industry, continuing its expansion in the market.
The company’s strategic approach and commitment to growth underscore its dedication to enhancing offerings and better serving a diverse range of residents. By diversifying and improving its services, Pathfinder can attract a broader customer base, increase occupancy rates, and drive higher revenue.
For more information about Pathfinder Ventures, visit pathfinderventures.ca.