The investment will see GB Bank “rapidly grow its lending capabilities”, so it will be able to offer funding of up to £10 million up to 80% LTV
Specialist property finance bank GB Bank has secured £85 million in additional capital, which will help “transform its operations”.
The capital comes from new investor Hera Holdings and existing shareholder Teeside Pension Fund.
Hera Holdings is investing £40 million in the company over the next 12 months, with an intention to invest a further £40 million through 2025 and 2026, which will allow GB Bank to “further boost its funding capabilities for property investments and regeneration across the UK”.
Teeside Pension Fund is investing a further £5 million.
The investment will see GB Bank “rapidly grow its lending capabilities”, so it will be able to offer funding of up to £10 million up to 80% LTV.
It will also “bring extensive growth for its specialist BTL finance” with an increase in loan size, offering capital and interest or interest-only options and expanding its customer base to welcome foreign nationals, expats and portfolio landlords.
The investment also means that GB Bank will be able to up its capacity for commercial and residential bridging, along with its commercial owner-occupier and investment mortgages.
GB Bank is forecasting that the new investment will allow it to grow its lending to £500 million over the next 12 months as it rapidly expands its team and infrastructure.
The lender’s recruitment drive is well underway, which will nearly double its current workforce within the next 12 months.
GB Bank became fully licensed in 2022 and, since then, has approved more than £80 million in loans to support over 100 property projects in locations ranging from Northumberland to the South coast.
It has also attracted over £300 million in deposits from savers for its competitive fixed term and instant-access accounts.
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