GB Bank set for step-change in growth after securing £85m investment deal

SPECIALIST property finance Bank is primed for rapid growth after securing new investment which is set to transform its operations.

GB Bank, which specialises in funding property projects for SME property developers and investors, has secured £85m of additional capital from new investor Hera Holdings and existing shareholder the Teesside Pension Fund.

Jersey based company, Hera Holdings, is investing an initial £40m in GB Bank over the next 12 months. In addition to the initial investment, there is an intention for Hera Holdings to invest a further £40m throughout 2025 and 2026 enabling GB Bank to further boost its funding capabilities for property investments and regeneration across the UK.

GB Bank CEO and Co-Founder Stephen Lancaster said: “This is fantastic news for GB Bank and everyone who has supported our purpose and ambitions since day one and is testament to the hard work of every single member of the team.

“We are delighted to have already helped so many brokers, property developers and investors to increase their property portfolios with our flexible funding solutions, as well as our savings customers who have trusted us with their money and received competitive rates of return. 

“This investment allows us to support even more property developers and investors with the vital funding they need whilst delivering exceptional customer service, which has been our hallmark since day one.”

The Teesside Pension Fund is the Local Government Pension Scheme for local authority employees in the Teesside region. It was one of the original investors in GB Bank and is now investing a further £5m.

Councillor Julia Rostron, Chair of the Teesside Pension Fund Committee, said: “We have backed GB Bank’s business model and its purpose throughout its journey through full banking authorisation and on to successful operation. Having Hera Holdings onboard has significantly bolstered its lending capabilities and accelerates its future success.

“Our continued support of GB Bank is testament to its incredible progress to date and its huge future potential.”

The expansion will see GB Bank rapidly grow its lending capabilities offering funding of up to £10m and up to 80% Loan To Value.  The investment will bring extensive growth for its specialist buy to let finance with an increase in loan size, offering capital and interest or interest only options and expanding its customer base to welcome foreign nationals, ex pats and portfolio landlords. It will also allow an increase in capacity for its popular commercial and residential bridging solutions, along with its commercial owner-occupier and investment mortgages.  

The Bank is forecasting that the new investment will allow it to grow its lending to £500m over the next 12 months as it rapidly expands its team and infrastructure.

GB Bank’s recruitment drive is well underway which will almost double its current workforce within the next 12 months.

Since becoming a fully licensed bank in August 2022, GB Bank has approved more than £80m in loans to support over 100 property projects in locations from Northumberland to the south coast. It has also attracted over £300m in deposits from savers for its competitive fixed term and instant access accounts.

GB Bank has won a number of industry awards including the Deal of the Year award at the NACFB Commercial Lender Awards 2023 and 2023 Best New Savings Provider by both Money Comms and Money Net.

Stephen Lancaster said: “Our current team have done a fantastic job in establishing GB Bank as a go-to provider for specialist property finance.

“We are primed and well positioned to champion property investment and regeneration right across the UK as we move forward with this transformational growth for the business.”

About Hera Holdings

Hera Holdings Limited is a company incorporated under the laws of Jersey and registered under number 146373 whose registered office is at 13 Castle Street, St Helier, Jersey JE2 3BT

About the Teesside Pension Fund

The Teesside Pension Fund is the Local Government Pension Scheme (LGPS) for local authority employees (or employees working for a body that is eligible to participate) in the Teesside region.

The Fund is administered by Middlesbrough Council, through the Teesside Pension Fund Committee. The Committee is made up of elected members of Middlesbrough Council, representatives of the other unitary authorities and trade unions, and is supported by investment professionals and independent investment advisors.

Category News