Blended Equity Cost (Developer + Investor) is the weighted average cost of equity capital in a property development finance UK project, combining the developer’s and external investor’s required returns. It accounts for the proportion of total equity each party contributes and their respective expected returns. Calculated as the sum of each equity component multiplied by its share of the total equity, this metric provides an accurate measure of overall equity financing cost, helping developers and investors assess project feasibility, expected returns, and risk exposure within UK property development finance structures, particularly in mixed funding arrangements.
This sits beneath Weighted Average Cost Metrics, introducing a more specific variant of the measure without changing its core interpretation. It is commonly considered alongside Blended Return on Equity, as both are closely related measures used to assess similar aspects of performance or risk.
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