A Canadian judge ruled Health Care Property Investors Inc. cannot make a bid for Sunrise Senior Living Real Estate Investment Trust, a Toronto-based REIT that it sought to take from a rival suitor.

Sunrise Senior was told by the Ontario Superior Court of Justice to stop negotiations with the Long Beach REIT and continue pursuing an acquisition by Louisville-based Ventas Inc. Health Care Property Investors had reportedly offered $1.2 billion for the company while Ventas bid was $200 million less.

Health Care Property Investors said it was prepared to reach an agreement on substantially the same terms as Sunrise’s agreement with Ventas, but said it was unable to reach a deal with Sunrise’s parent company, McLean, Va.-based Sunrise Senior Living Inc. and was kept out of the auction.

Ventas argued that Health Care Property was prohibited from negotiating because Ventas and Sunrise had already signed a memorandum of understanding last month.

Shares in Health Care Properties were up $1.55, or 4 percent, to $36.59 in afternoon trading Tuesday on the New York Stock Exchange.