GB Bank Secures £85m Investment for Expansion Plans

Learn how GB Bank's recent £85m investment injection is accelerating their expansion plans in property project funding for SME developers and investors.

GB Bank, a leading player in property project funding for SME developers and investors, has recently announced a significant boost in capital. The bank has secured £85m in additional funding, with Hera Holdings and the Teesside Pension Fund playing key roles in this investment. Hera Holdings, a prominent company based in Jersey, has committed to an initial investment of £40m over the next year, with plans for an additional £40m infusion spread out over 2025 and 2026. This injection of capital is aimed at strengthening GB Bank's funding capabilities, particularly in the realm of property investments and regeneration projects across the UK.

In addition to Hera Holdings' investment, the Teesside Pension Fund, an existing shareholder of GB Bank, has pledged an additional £5m investment. This further demonstrates the fund's confidence in the bank's business model and its potential for future success. The influx of capital will enable GB Bank to accelerate its expansion plans and significantly enhance its lending capabilities. The bank is looking to offer funding of up to £10m with an up to 80% Loan To Value ratio, focusing on specialist buy-to-let finance, bridging solutions, and commercial mortgages.

GB Bank has set an ambitious target of reaching a lending portfolio of £500m within the next year, supported by an expansion of its workforce. Since obtaining its banking license in August 2022, the bank has already approved over £80m in loans to support various property projects across the UK. Additionally, GB Bank has attracted over £300m in deposits from savers and has been recognized with industry awards such as the Deal of the Year award at the NACFB Commercial Lender Awards 2023.

The substantial investment from Hera Holdings and the Teesside Pension Fund will enable GB Bank to further solidify its position in the market and continue its impressive growth trajectory. The bank's focus on property investments and regeneration initiatives, coupled with its commitment to expanding its lending capabilities, positions it well for future success.