Alloggio acquires Best of Magnetic for AU$2.95m

Australia: New South Wales-based property management company Alloggio Group has announced the impending acquisition of holiday property management business Best of Magnetic in Magnetic Island for a sum of AU$2.95 million, marking its entry into the North Queensland market.

The latest purchase represents a significant expansion of Alloggio’s existing footprint, adding 160 properties and a car rental business to its portfolio of more than 1800 holiday properties on the east coast of Australia.

According to a press release, the holiday properties will be integrated onto Alloggio’s proprietary cloud-based technology platform which is designed to provide an end-to-end management solution for holiday property owners.

Daily operations will continue to be carried out by the existing Best of Magnetic management team, supported by Alloggio’s centralised marketing, distribution and finance teams.

Despite the impact of border closures in Queensland due to the pandemic, Best of Magnetic generated a gross booking value of $6.5 million and $1.5 million in annual gross revenue, making it an attractive proposition for Alloggio to spur its domestic growth.

Alloggio – which is Italian for ‘accommodation’ – went public via an initial public offering [IPO] on the Australian Securities Exchange [ASX] in November, raising $16.5 million at 20c a share in the process. It intends to fund the acquisition from existing cash reserves incorporating the funds raised in its IPO.

Since closing its IPO, Alloggio has announced multiple acquisitions, including Accom Noosa and the management rights of Fairshore and Noosa International Resort in Noosa, as well as Great Ocean Road Holidays in Great Ocean Road.

Alloggio founder and CEO, Will Creedon, said: “With Magnetic Island, the clue is in the name. We are excited to offer Alloggio’s range of premium services to holidaymakers year-round, particularly travellers following the sun over the winter months to such a quintessential North Queensland holiday destination.

“The acquisition of Best of Magnetic facilitates our entry into the attractive North Queensland market and continues our strong momentum following our recently announced acquisitions in Noosa and on the Great Ocean Road. The acquisition is consistent with our growth strategy of growing holiday property management rights and we are excited about the significant pipeline of opportunities ahead as Australian domestic tourism continues its strong rebound,” he added.

Founded in 2015, the company operates a portfolio of brands in popular tourism destinations across Australia, such as Noosa, Coffs Harbour Port, Port Stephens, Jervis Bay, Mollymook / Milton, Great Ocean Road and Mornington Peninsula.