Related-party conflict disclosed — Advisor and Affiliates — affiliated transactions (sales, leases, loans, services)
MediumThe charter explicitly permits the Company to purchase or lease Properties from Affiliated Sellers (Sponsor, Advisor, Directors or their Affiliates) and to sell/lease to those same parties, subject to majority Independent Director approval and fair-value / arm's-length standards. The Company may not purchase from an Affiliated Seller above the Affiliated Seller's cost unless substantial justification exists, and may not exceed current appraised value. No loans may be made to Sponsor, Advisor, Directors or their Affiliates except mortgage loans to wholly-owned subsidiaries.
“The Company may purchase or lease a Property or Properties from an Affiliated Seller upon a finding by a majority of Directors (including a majority of Independent Directors) not otherwise interested in the transaction that such transaction is competitive and commercially reasonable to the Company. Additionally, the Company may not purchase a Property or Properties from an Affiliated Seller at a price to the Company that is greater than the cost of the asset to the Affiliated Seller unless substantial justification for such excess exists and such excess is reasonable, there is appropriate disclosure of the material facts concerning each such transaction and the transaction is otherwise approved by the Board of Directors as contemplated by this Section 11.1.”
PPM p.2792% confidence