Next Capital agrees to buy Alloggio at downgraded valuation

Australia: Mid-market private equity firm Next Capital has reportedly agreed to acquire New South Wales-based short-term rental operator Alloggio Group at a downgraded valuation of AU$48.2 million [US$32.7 million] after cutting the offer price down by 20 per cent.

According to a filing, Next Capital will buy all outstanding shares in Alloggio for AU$0.24 apiece through a scheme of implementation, which marks a 50 per cent premium on the closing price on 9 June.

It was previously announced in March that Alloggio, which is the Italian word for ‘accommodation’, was set to be purchased in a transaction worth around AU$60 million after entering into a Scheme Implementation Deed with Next Capital.

The takeover bid remains subject to shareholder approval in a vote that is scheduled to take place in July.

Alloggio went public on the Australian Securities Exchange [ASX] in November 2021.

Founded in 2015, Alloggio Group features two business divisions – holiday property management and mid-market hotels – that use a proprietary in-house technology platform, providing an end-to-end solution for travellers, holiday property owners and managers.

The group’s portfolio of properties are located in popular tourism destinations across Australia, including Magnetic Island, Noosa, Coolum, Brisbane, Coffs Harbour, Maitland, Port Stephens, Newcastle, Bathurst, Bega, Jervis Bay, Mollymook / Milton, Mornington Peninsula and the Great Ocean Road.

Since raising $16.5 million while going public via an initial public offering [IPO] in November 2021, Alloggio has continued to expand its portfolio across Australia, including acquiring North Queensland-based property management business Best of Magnetic in Februaryinvesting $16 million in acquisitions in holiday hotspots as part of a comprehensive six-month expansion programme in August, and purchasing fellow operator A Perfect Stay in an $11 million transaction in December.