Health Care Property Investors, Inc. (HCP)

[ScovilleUnits]

HCP to Transition 15 Additional Sunrise Senior Housing Communities

Thursday , June 18, 2009 16:05ET

LONG BEACH, Calif., Jun 18, 2009 (BUSINESS WIRE) -- HCP (NYSE:HCP) announced that the management agreements on 15 communities operated by Sunrise Senior Living, Inc. or its subsidiaries ("Sunrise") have been terminated effective October 1, 2009, for Sunrise's failure to achieve certain performance thresholds. The termination of the agreements does not require the payment of a termination fee by HCP or its tenant. HCP expects to transition these facilities to new operators during the second half of 2009, reducing the Sunrise-managed properties in its portfolio to 75 communities from the original 101 communities HCP acquired in the 2006 CNL Retirement Properties, Inc. transaction.

HCP intends to enter into new arrangements for the 15 communities that are expected to improve the operating margins of the communities in a manner similar to HCP's successful transition of 11 former Sunrise communities to a new operator in December 2008. The management agreements for those 11 communities were also terminated for Sunrise's failure to achieve certain performance thresholds and did not require the payment of a termination fee by HCP or its tenant.

"This transaction highlights the most recent example of HCP's active approach to asset management as we continue to find ways in this challenging environment to unlock value in our portfolio. Discussions with new senior housing operators for the 15 communities are at an advanced stage and we look forward to closing these transactions in the near future," said HCP Chairman and Chief Executive Officer, Jay Flaherty.

http://www.knobias.com/story.htm?eid=3.1.378a965d66aeb1c3ad1666ae8d926b026ee124c5a370ff037a364f38b4e867b6