Blended Return on Equity is a key metric in property development finance UK that calculates the weighted average return across all equity contributions within a development project. It accounts for different levels of investment risk and funding layers, reflecting the effective performance of combined equity capital. Developers and investors use it to assess potential returns from multiple sources of funding, including private equity, joint ventures, or shareholder contributions. By weighting each tranche according to the capital invested, the blended return provides a realistic measure of overall project profitability, guiding strategic funding decisions and risk management in UK property development projects.
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 Equity Cost (Developer + Investor), as both are closely related measures used to assess similar aspects of performance or risk.
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