REIT acquires LV entertainment supplier

Friday, April 9, 1999 | 11:51 a.m.

New York-based W.P. Carey & Co., which controls Corporate Property Associates: 14, a privately held REIT, bought Production Resource Group LLC. The transaction was valued at $8 million.

PRG operates a 127,496-square-foot facility on 5.7 acres at 6050 S. Valley View Blvd. The company, which increased revenues 132.5 percent in one year to $174.6 million in 1998, builds and supplies materials for live entertainment corporate events and theme entertainment markets.

The company's products and services include scenery and exhibit fabrication, computerized motion and show control systems, automated lighting systems, theatrical and audio equipment and project engineering, budgeting, installation and management.

In Las Vegas, the company provides systems for trade shows and hotel entertainment productions.

"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," said Gordon Whiting, executive vice president and portfolio manager for CPA: 14.

PRG's client list includes Disney, Buick, Chrysler, IBM, Nike and Warner Bros.

W.P. Carey, which specializes in corporate real estate financing through leases and sale-leaseback arrangements, manages more than 33 million square feet of property in 41 states with a value of about $2.5 billion.