Hedging Carry Cost to Gross Development Value (GDV) is a measure used in property development finance to express the cost of maintaining financial hedges, such as interest rate or currency protection, as a proportion of the projected GDV of a scheme. These hedging arrangements reduce exposure to market volatility but add a cost element to the financing structure. By calculating hedging carry cost relative to GDV, developers and lenders can assess how protective measures impact overall project viability, equity returns and funding efficiency within the wider capital composition of UK property development finance.
This sits beneath Instrument Features & Cost Drivers, introducing a more specific variant of the measure without changing its core interpretation. It is commonly considered alongside Floors/Caps Utilisation, as both are closely related measures used to assess similar aspects of performance or risk. In funding terms, Hedging Carry Cost to GDV is most commonly encountered in connection with EPC-A Condition Loans within the property development capital stack.
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