Diversity Group International Expands Business Focus
MIAMI, July 6, 2011 /PRNewswire/ -- As the Diversity Group International (PINKSHEETS: DGIN) Interest Rate Optimization Strategy (IROS) program continues to gain momentum and awareness in the premium finance insurance industry, the firm has begun to diversify the strategy's application to the Commercial Real Estate industry.
"Our research indicates that the commercial real estate industry in the U.S. alone exceeds 6.5 trillion dollars in assets and is expected to grow another $4.8 trillion by 2020," says CEO Kevin Bobryk. "The commercial real estate mortgage market in the U.S. accounts for $2.4 trillion in loans. A large number of these loans will reset over the next few years, which may expose them to potentially higher interest rates. Our IROS program will provide a direct means to potentially offset those higher interest rates."
According to many sources, including Moody's Analytics (Federal Reserve) – May 2011, long-term Commercial Real Estate loan interest rates are expected to rise over the next few years, from the current record lows to as high as 8%. DGIN believes this will drive even greater interest in cost reducing strategies like the IROS program.
"We see a major competitive advantage with the IROS product over the current products available to the commercial real estate market. The IROS product provides a simple, transparent, highly liquid, flexible and low entry cost structure that functions independently of the loan versus the typical complex, locked-in and potentially costly derivatives-based products that are offered today," says Bobryk.
With the application of the IROS product to the commercial real estate market, the firm has adjusted its pro-forma revenue expectations across the next 5 years with an additional 10 million dollars in gross revenue. "The potential for further market expansion and revenue estimations exists with the firm looking toward Asia, specifically the rebuilding in Japan and China's exponential growth, as these commercial real estate loans will continue to come under inflationary pressures similar to those in the domestic U.S. market that are causing interest rates to rise."
About Diversity Group International Inc.: Diversity Group International (DGI) is a U.S.-based company listed under the symbol DGIN. DGI specializes in the development and delivery of interest rate, currency and Insurance related products and services in both the domestic (U.S.) and International markets.
Contact:
DIVERSITY GROUP INTERNATIONAL INC.
#1818, 600 NE 36th Street
Miami, FL, 33137
www.diversitygi.com
Kevin Bobryk, CEO
Email: [email protected]
Tel: 1-305-515-5610
FORWARD-LOOKING STATEMENT:
Certain statements in this release, other than statements of historical fact, may include forward-looking information that involves various risks and uncertainties. There can be no assurance that such forward-looking statements will prove to be accurate. Actual result and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward-looking statements are based on the estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice. The Company assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change, other than as required pursuant to applicable securities laws.
SOURCE Diversity Group International
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