NEW YORK, NY – April 8, 1999 – W. P. Carey & Co. LLC, a leader in the ownership and net leasing of corporate properties, announced that it has completed the acquisition of the Las Vegas regional manufacturing and warehouse distribution facilities of Production Resource Group, L.L.C. on behalf of Corporate Property Associates 14 (CPA®:14). CPA®:14, a private real estate investment trust (REIT), is a member of the $2.5 billion W. P. Carey Group. The property, leased to Production Resource Group under a 15 year bond type net lease, is located on a 5.69 acre site in close proximity to the Las Vegas strip, the interstate highway system, the central business district, and McCarran International Airport. The purchase price of the 127,496 square foot facility is approximately $8 million.
Production Resource Group, L.L.C. is a leading integrator, fabricator and supplier of a broad range of products and services for the live entertainment, corporate events and theme entertainment markets. PRG's products and services include scenery and exhibit fabrication; computerized motion and show control systems; automated lighting systems; theatrical and audio equipment; as well as project management, which encompasses design engineering, budgeting, logistical coordination and installation. Revenues for the year ending December 31, 1998 were $174.6 million as compared to $75.1 million for the fiscal year ending December 31, 1997.
Gordon J. Whiting, Executive Vice President and Portfolio Manager of CPA®:14 noted, "In evaluating the investment, we were impressed by the niche the company has carved out for itself in an industry that appears to be highly competitive. Having grown substantially over the past few years though acquisition and internal expansion, PRG has now embarked on a plan for streamlining and integrating its different business segments. Combined with the Company's positive revenue trend, this plan should allow PRG to increase profitability and maintain its strong presence in the industry. With its diverse roster of clients, which includes among others, Disney, Buick, Chrysler, IBM, Nike and Warner Brothers, we view PRG as a quality credit. Furthermore, in addition to its prime location, the real estate provides additional assurance that our shareholders will benefit from a steady income stream and solid long term value."
Founded in 1973, W. P. Carey & Co. specializes in corporate real estate financing using the corporate net lease, or sale-leaseback structure. The firm, together with its affiliates, is one of the largest lessors of net leased corporate real estate in the nation. The W. P. Carey Group manages the largest publicly traded limited liability company listed on the New York Stock Exchange and four real estate investment trusts. Collectively, Carey manages over 33 million square feet of property located in 41 states. The W. P. Carey Group's properties have an aggregate value of approximately $2.5 billion.
This press release contains forward-looking statements within the meaning of the Federal securities laws. A number of factors could cause the company's actual results, performance or achievement to differ materially from those anticipated. Among those risks, trends and uncertainties are the general economic climate; the supply of and demand for office and industrial properties; interest rate levels; the availability of financing; and other risks associated with the acquisition and ownership of properties, including risks that the tenants will not pay rent, or that costs may be greater than anticipated. For further information on factors that could impact the company, reference is made to the company's filings with the Securities and Exchange Commission.