Hera Holdings is investing an initial £40m in the bank over the next 12 months, while Hera also intends to invest a further £40m throughout 2025 and 2026.

The Teesside Pension Fund, the Local Government Pension Scheme for local authority employees in the Teesside region, has invested a further £5m, after being one of the original investors in GB Bank.

The expansion plans to allow GB Bank to rapidly grow its lending capabilities offering funding of up to £10m and up to 80% LTV, as well as grow its specialist BTL finance with an increase in loan size, offering capital and interest or interest only options and expand its offering to foreign nationals, ex pats and portfolio landlords.

Also planned with the receiving of the facility is an increase in capacity for the bank’s commercial and residential bridging solutions, along with its commercial owner-occupier and investment mortgages.

GB Bank is forecasting that the new investment will allow for a lending growth of £500m over the next 12 months.

•   The Finance Professional Show 2023: The Video
•   GB Bank provides £750,000 bridge to fund development of three business units
•   GB Bank appoints Mark Sismey-Durrant as new chair

The company also plans to double its workforce over the next 12 months and expand its infrastructure.

Stephen Lancaster, CEO and co-founder at GB Bank (pictured above), 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.

“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.”

Cllr Julia Rostron, chair of the Teesside Pension Fund Committee, added: “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.”