Middlesbrough-based GB Bank is looking to double its headcount after securing £85m in new investment.
The bank, which specialises in funding property projects for SME property developers and investors, has secured the additional capital from new investor Hera Holdings and existing shareholder the Teesside Pension Fund. Jersey-based Hera Holdings is investing an initial £40m in GB Bank over the next 12 months, with the intention of making available a further £40m in the two years after that.
The Teesside Pension Fund, which provides pensions for local authority employees on Teesside, is investing another £5m, having been one of GB Bank’s original investors. GB Bank said the new investment would allow it to increase its ability to lend to companies wanting finance for property investments and regeneration across the UK, as well as doubling its current headcount of around 40 people.
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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 for 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.”
Coun 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. It will also increase the size of loans available in buy-to-let finance, as well as increasing capacity for commercial and residential bridging loans. The bank believes the new investment will allow it to grow its lending to £500m over the next 12 months and has already begun a recruitment drive.
Mr 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.”