Wed, Oct 16 2024

GB Bank raises capital of £85 million.

May 20, 2024
1 Min Read

The Teesside Pension Fund, an existing stakeholder, and Hera Holdings, a new investor, have contributed an additional £85 million to GB Bank, which finances real estate projects for SME investors and developers.

Over the course of the following year, GB Bank will receive an initial £40 million investment from Jersey-based Hera Holdings. Hera Holdings plans to add an additional £40 million to the initial investment during the course of 2025 and 2026.

GB Bank has authorized more than £80 million in loans to fund more than 100 real estate developments in areas ranging from Northumberland to the south coast since obtaining its full banking license in August 2022. Additionally, savers have deposited over £300 million with it thanks to its affordable fixed-term and instant-access accounts.

 

With this development, GB Bank will be able to provide loans up to £10 million and an 80% loan-to-value ratio. The investment is expected to significantly boost the company's specialised buy-to-let financing business by increasing loan sizes, providing alternatives for capital and interest or interest only, and broadening its clientele to include foreign residents, expatriates, and portfolio landlords. It will also enable an expansion of its investment and commercial owner-occupier mortgage capacity, as well as its commercial and residential bridging solutions.

According to the Bank's prediction, the increased investment will enable it to treble its present workforce and increase lending to £500 million over the next 12 months.

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