NorthStar_Global_Logo_full

Northstar Global Services, Inc. (OTCMKTS:MDIN) Acquiring Portfolios in the European Real Estate Market

Northstar Global Services, Inc. (OTCMKTS:MDIN) recently announced the completion of a €1.1 billion deal. The deal involved the pan-European office portfolio, which had been in the pipeline since 2014. The deal targets 7 of the top markets in Europe, for which the company has asked for 11 Class A offices. The portfolio includes 186,000 sq meters and is also the beneficiary of market leading tenants from varying walks of the industry. The deal was financed €530 million from MDIN, which returned seven-year senior mortgages and an average interest rate of 1.8%.

The CEO of the company, David Hamamoto, expressed his delight at expanding the company’s operations in the European market. The company aims to make use of this portfolio to generate substantial profits for the company. The CEO also hinted that the company’s acquisition is worth more than its intrinsic value. The company has already started receiving bids for the portfolio, with some bids returning as much as 30% profits to the company. The company also announced that another big portfolio from the European market is in the pipeline for the company, with costs of the acquisition being around €450 million.

The move is the latest in a series of movements by different small scale companies in the US that are trying to break into the European market. With the real-estate market in the US moving slowly, it seems like a wise decision for the company to expand its roots elsewhere. Europe has become a great second option for American companies that are trying to make a move to the international market. Additionally, European business laws are much softer than the ones in America, and small businesses are seen to thrive there. The company also aims to create a new European wing to manage the businesses there separately. The board of directors has already approved a plan to allow public trading of its European wing. The new company is expected to be listed both on NYSE and in Europe. The results of this move are expected to be announced by the end of 2Q2015.

Northstar Global Services, Inc. (OTCMKTS:MDIN) closed at $0.001 gaining 11.11% in yesterday’s trading session.

Related News

Leave a Reply

Your email address will not be published. Required fields are marked *

Copyrıght 2015 traders350.com. All RIGHTS RESERVED.