Direct-hold solutions structural comparison
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fix(wiki): retire the fictional 'Universal Governing Bylaws' single-document framing across 4 articles (Track-B integrity review, operator-clarified) — the real underlying fact is that each Direct-Hold Solution has its own governing partnership/trust agreement, self-similar in substance across jurisdictions, not one unified document; reframed all 6 occurrences (four-jurisdiction-framework, direct-hold-solutions-structural-comparison x2, corporate-glossary's Qualified Investment entry, narrow-bank-financial-model) to 'each vehicle's own governing agreement'; dropped unconfirmed specific criteria names (co-location/Prototype/Campus Design) alongside the fictional document name; EN+ES
@@ -44,7 +44,7 @@ The Direct-Hold Solutions, as designed, differ from the three most common altern ### Capitalized interest prohibition **No capitalized interest.** Legacy Joint Ventures and Private Equity structures commonly permit interest costs to be capitalized — added to loan principal rather than recognized as a current-period expense. This practice can obscure the actual cost of construction financing and inflate the apparent book value of partially completed buildings. The Universal Governing Bylaws of the Direct-Hold Solutions explicitly prohibit capitalized interest. All interest is expensed as incurred. Traditional REITs typically exclude capitalized interest through their operating REIT structure; the Direct-Hold Solutions impose the same constraint through covenant rather than through the REIT operating framework. **No capitalized interest.** Legacy Joint Ventures and Private Equity structures commonly permit interest costs to be capitalized — added to loan principal rather than recognized as a current-period expense. This practice can obscure the actual cost of construction financing and inflate the apparent book value of partially completed buildings. Each Direct-Hold Solution's own governing agreement explicitly prohibits capitalized interest. All interest is expensed as incurred. Traditional REITs typically exclude capitalized interest through their operating REIT structure; the Direct-Hold Solutions impose the same constraint through covenant rather than through the REIT operating framework. ## Features Where Direct-Hold Solutions Match Listed REITs @@ -80,4 +80,4 @@ Four features appear only in the Direct-Hold Solutions column: **Debt Right of First Refusal.** The Direct-Hold Solutions provide investors with a right of first refusal on the First Secured Mortgage Debentures issued by the vehicle for new construction financing. This right allows existing equity investors to participate in the vehicle's debt issuance before it is offered to external purchasers, preserving the ability to maintain exposure across both the equity and debt capital structure of the same underlying assets. **Qualified Investment Discipline.** The Universal Governing Bylaws mandate that capital is deployed strictly into Qualified Investments — development sites meeting the co-location criteria, Prototype requirements, and Campus Design standards that define the Direct-Hold Solutions' development discipline. No other structure in the comparison set imposes a comparable capital deployment constraint through its governing documents: Legacy Joint Ventures are project-specific, Private Equity funds have investment mandates that are manager-discretion, and Traditional REITs operate under broad asset class definitions. **Qualified Investment Discipline.** Each Direct-Hold Solution's own governing agreement mandates that capital is deployed strictly into development sites meeting the Direct-Hold Solutions' development discipline. No other structure in the comparison set imposes a comparable capital deployment constraint through its governing documents: Legacy Joint Ventures are project-specific, Private Equity funds have investment mandates that are manager-discretion, and Traditional REITs operate under broad asset class definitions.