Sunrise to appeal decision in Ventas, Health Care Property Investors court decision

By Lisa Kerner

Charlotte, N.C., March 8 - Sunrise Senior Living REIT said it will file a notice of appeal in the Ontario Superior Court and seek an expedited hearing in the ongoing litigation surrounding Sunrise, Ventas, Inc., Health Care Property Investors, Inc. and Sunrise Senior Living, Inc.

The Ontario Superior Court ruled that Sunrise is obligated to comply with covenants in the Jan. 14 purchase agreement with Ventas, preventing the company from negotiating with Health Care Property Investors, according to a company news release.

Under the agreement, Ventas would acquire the interest in 74 of Sunrise's private-pay senior living communities in the United States and Canada in a transaction valued at $1.8 billion.

The Health Care Property Investors confidentiality and standstill agreement prohibits it from making any proposal to acquire any assets of Sunrise through May 2008. Thursday, it was announced that Health Care Property Investors has since withdrawn its offer to purchase the assets of Sunrise.

Applications filed by Sunrise and Sunrise Senior Living Inc. seeking clarification from the court regarding their rights to negotiate with Health Care Property Investors were dismissed by the court.

Sunrise rescheduled its special meeting of unit holders to consider the proposed fully funded transaction with Ventas to March 30. The record date for the meeting remains Feb. 19.

Ventas is a Louisville, Ky., health care real estate investment trust.

Toronto-based Sunrise was formed to indirectly acquire and own senior living communities.

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