Sunrise Initially Rebuffs Higher HCPI Bid

TORONTO-Sunrise Senior Living Real Estate Investment Trust has received a higher buy-out offer it won’t accept without additional information. Health Care Property Investors Inc. has offered to acquire the company for C$18 per share, $3 per share higher than healthcare REIT Ventas Inc.’s buy-out agreement that dates to January. Including C$1 billion of assumed debt, both deals would have a total enterprise value of more than $2 billion.

HCPI says that save for the higher price, its offer would have the same terms as the agreement currently in place with Ventas. Sunrise said Thursday morning it will not consider Wednesday’s proposal until it receives a confirmation from HCPI that their proposal is not conditional on it reaching an agreement with Sunrise Senior Living Inc., the manager of the Sunrise REIT’s 74-property portfolio.

If HCPI eventually succeeds in trumping Ventas’ bid, it would be the second major acquisition by the Long Beach, CA-based REIT in as many years. In 2006, it acquired CNL Retirement Properties for $5.3 billion, the largest healthcare REIT transaction in history.