GB Bank secures £85m from Hera Holdings and the Teesside Pension Fund to expand property lending.
The investment comprises an initial commitment from Hera Holdings alongside continued backing from the Teesside Pension Fund.
GB Bank is a specialist property finance bank providing development loans and savings accounts across the UK.
GB Bank has secured £85m in new funding from Hera Holdings and the Teesside Pension Fund to accelerate its growth and expand its lending capabilities. Jersey based Hera Holdings is committing an initial £40m over the next year alongside plans for a further £40m through 2025 and 2026, while existing backer the Teesside Pension Fund is adding £5m.
The capital injection will enable the bank to increase its maximum loan size to £10m and scale up operations in specialist buy to let, bridging solutions, and commercial mortgages. GB Bank plans to grow its lending book to £500m over the next year while nearly doubling its workforce.
Since obtaining its full banking licence in August 2022, the institution has approved over £80m in loans for property projects across the country while attracting more than £300m in retail deposits.
From the founder
"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."
Stephen Lancaster
CEO and Co-Founder at GB Bank
Investor perspective
"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."
Julia Rostron
Chair of the Teesside Pension Fund Committee, Teesside Pension Fund
Use of funds
- 01Grow the team
- 02Build out infrastructure
- 03Scale operations
