Net Profit after Finance (on GDV) measures the percentage return on a property development project after deducting all finance costs—such as interest, arrangement fees, and lender charges—from the residual profit once all development costs have been covered. Calculated against the total Gross Development Value (GDV), it represents the actual net profitability available to developers and investors, accounting for borrowing expenses. This widely used metric in UK property development finance helps compare project performance, assess risk-adjusted returns, and guide capital structure choices by providing a clear indicator of the financial outcome at project completion.
This sits beneath Project-Level Profitability, introducing a more specific variant of the measure without changing its core interpretation. It is commonly considered alongside Tax Friction Impact, as both are closely related measures used to assess similar aspects of performance or risk. In funding terms, Net Profit after Finance (on GDV) is most commonly encountered in connection with Fixed Return + Profit Share within the property development capital stack.
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