HCP, SRZ Enter $50 Million Deal

HCP Inc HCP has reached a deal to end the contracts on 27 of its senior housing communities that were managed by Sunrise Senior Living Inc SRZ. HCP plans to enter into new contracts for these 27 communities and said that these will have improved operating margins. The changes will come into effect through the end of this year. HCP has agreed to pay SRZ $50 million, including an immediate payment of $40 million. The remaining amount is to be paid over the forthcoming 12 months. This would end all judicial proceedings between the two companies. SRZ has agreed to limit certain fees and charges connected to its ongoing contracts. Prior to this deal, HCP repositioned 30 communities from SRZ to new operators. from Benzinga's Company news.