GB Bank poised for ‘transformational growth’ after double investment

A challenger bank founded to bolster the UK property market says it has laid the foundations for “transformational growth” after securing £85 million investment.

GB Bank has been backed by Hera Holdings.

Bosses at the Middlesbrough-headquartered lender, which supports small and medium-sized property developers and investors, says Hera’s support will “rapidly grow” lending to more than £500 million over the next year.

They say it will also reinforce an ongoing recruitment drive, with its team set to nearly double over the coming 12 months.

Under the terms of the deal, Jersey-based Hera will invest an initial £40 million in the next year, with the remaining £40 million planned for 2025 and 2026.

Meanwhile, the Teesside Pension Fund, which was an original investor in GB Bank, has agreed to pump a further £5 million into the venture.

Stephen Lancaster, chief executive and co-founder of GB Bank – which has provided loans worth in excess of £80 million for more than 100 projects from Northumberland to the south coast since its 2022 launch – called the funding “fantastic news”.

He said: “This 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, as well as our savings customers, who have trusted us with their money.

“This investment allows us to support even more property developers and investors with the vital funding they need while delivering exceptional customer service.

“We are primed and well positioned to champion property investment and regeneration right across the UK.”

Councillor Julia Rostron, Teesside Pension Fund committee chair, added: “Our continued support is testament to GB Bank’s incredible progress and its huge future potential.”