GB Bank, a key player in property project funding for SME developers and investors, has secured £85m in additional capital.
According to FinTech Finance, this substantial investment comes from Hera Holdings, a prominent Jersey-based company, and the Teesside Pension Fund, one of GB Bank’s existing shareholders.
Hera Holdings has committed an initial £40m investment over the next year, with plans for an additional £40m infusion spread across 2025 and 2026. This influx of capital aims to enhance GB Bank’s funding capabilities, particularly for property investments and regeneration initiatives throughout the UK.
The CEO and Co-Founder of GB Bank, Stephen Lancaster, expressed his enthusiasm regarding this development, highlighting its significance in supporting the bank’s purpose and ambitions. Lancaster stated, “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.”
Additionally, the Teesside Pension Fund, a staunch supporter of GB Bank since its inception, has pledged an additional £5m investment, further demonstrating confidence in the bank’s business model and its potential for future success.
This financial infusion will fuel GB Bank’s rapid expansion plans, enabling it to enhance its lending capabilities significantly. The bank intends to offer funding of up to £10m with an up to 80% Loan To Value ratio, facilitating growth in specialist buy-to-let finance, bridging solutions, and commercial mortgages.
Moreover, GB Bank anticipates substantial growth in its lending portfolio, aiming to reach £500m within the next year. This ambitious target will be supported by an expansion of the bank’s workforce, with plans to almost double its current staff complement.
Since obtaining its banking license in August 2022, GB Bank has made significant strides in the market, approving over £80m in loans to support various property projects across the UK. Additionally, the bank has attracted over £300m in deposits from savers, earning recognition through industry awards such as the Deal of the Year award at the NACFB Commercial Lender Awards 2023.
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