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NORTH LONG BEACH — Real estate investment trust HCP Inc. said Monday it filed complaints against Sunrise Senior Living Inc. and its subsidiaries, and wants to terminate agreements on 64 properties.
The company alleges a breach of contract. Earlier in June, HCP said it would eliminate contracts with 15 facilities operated by Sunrise Senior Living because of a failure to meet performance thresholds.
The recent complaints, which include filings from three of HCP's tenants, were filed in the Delaware Chancery Court on June 29. They allege that Sunrise systematically breached various contractual and other duties, including "operating the properties in a manner that impermissibly favored the interests of Sunrise and its affiliates at the expense of HCP and its tenants," HCP said.
HCP is seeking damages and the right to terminate agreements on 64 properties.
"HCP purchased these communities under long-term management contracts with many years remaining," said Mark Ordan, Sunrise's CEO, in a statement. "The communities have steadily improved their performance, yet HCP has continually expressed their desire to terminate their agreements. We see today's announcement as just another attempt to unlawfully terminate our agreements and we will enforce our rights vigorously on behalf of all Sunrise stakeholders."
Shares of HCP fell 2 cents to close at $21.08.
