New challenger bank GBB secures a further £28million investment to level up the North

August 2021 – GBB, a new bank focused on delivering property finance to underserved regions of the UK, has secured a further investment from its cornerstone investor, the Teesside Pension Fund (TPF), which has invested £20m to date. The TPF has agreed to invest up to an additional £28m, when GBB obtains its provisional banking licence expected later this year.

The move underlines the Fund’s commitment to supporting GBB’s mission of lending to SME property developers, playing a crucial role in the levelling up agenda and helping to get Britain building again. Currently only c235k of the government’s annual 300k housebuilding target is being met.

Recently, the Prime Minister and Chancellor challenged institutional investors to create an ‘Investment Big Bang’ to drive the UK’s recovery, with a direct call to pension funds to play their part.

GBB, which recently appointed banking veteran Sue Hayes as Chief Executive Officer and whose Chairman is Paul Rippon, co-founder of two digital banks Starling and Monzo, is expecting to launch later this year following approval of its banking licence application.

The significant investment made by the £4.7 billion Teesside Pension Fund is a clear endorsement of the proposition, team and ongoing work as the bank is built. PwC is acting as GBB’s main adviser.

Sue Hayes, Chief Executive Officer, GBB said: “Accessing finance still remains a challenge for many developers and it’s my ambition to make that a much easier, more straightforward process. We’re delighted the Teesside Pension Fund shares our vision and its fantastic ongoing support will help us through the regulatory journey of becoming a bank.”

Councillor David Coupe, chair of the Teesside Pension Fund, said: “We are proud to support GBB in their mission to support SME property developers in the regions and in turn help address the chronic shortage of housing. It’s been a long-term aspiration of the fund to invest in an attractive and well-controlled local opportunity and we’re pleased to have identified a robust, digital start-up such as GBB as a strong way to maximise returns for the Pension Fund’s beneficiaries.”

Andy Preston, Mayor of Middlesbrough, said: “Having a new bank based in the centre of our town is exactly what we need to give Middlesbrough a further boost, attracting and creating jobs of all kinds, while also shining deserved attention on the town. It will be fantastic to have a bank that’s growing and investing across the North-East from its headquarters in Centre Square.”

Upon launch, GBB, intends to get Britain building by providing property development loans of between £1 million and £5 million, with lending supporting regional property developers, small and medium sized businesses, and construction companies. It aims to lend £3 billion over five years building a £1 billion plus balance sheet. It will fund almost 20,000 homes and several million square feet of office space, supporting the creation of over 100,000 jobs. For savers, competitive fixed rates will be protected by the Financial Services Compensation Scheme (FSCS).

For more information and to follow our journey please visit www.thegbb.co.uk.

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Caroline Marsden at Astute.Work on 07720 849189 / caroline@astute.work.

About GBB
GBB is building a new specialist bank that will bring much needed financial support to SME property developers in underserved regions, underpinned by an exciting savings proposition.

Only around half of the Government’s housebuilding target is being met. Alongside availability of land and planning permission, access to finance is a key driver of this.

GBB intends to get Britain building by providing bespoke development finance to SME property developers in underserved regions. We’ll also offer savings rates that the UK public will love. GBB is determined to be a powerful force and make a tangible impact in property development in the UK.