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Home » North East Property Finance Firm GB Bank Launches New London Office

North East Property Finance Firm GB Bank Launches New London Office

North East property finance group GB Bank is expanding its footprint to launch a new office in London’s Mayfair.

The Middlesbrough-based bank, which specialises in funding property projects for SME property developers and investors, last month secured investment amid plans to grow its 42-strong team and boost its ability to lend to firms involved in regional property investment and regeneration.

Now the challenger bank – launched in Newcastle and now based in Middlesbrough – has also launched a base in the capital amid moves to become a key player in the London and South East property sector. Stephen Lancaster, chief executive and co-founder of GB Bank, said the bank is well-positioned to bring its expertise to the London market.

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Go here for more North East business news He said: “The opening of our London office is a significant milestone for GB Bank. This expansion allows us to serve the entire UK market even more effectively. Since securing our full banking licence in 2022, we have been successfully delivering property finance solutions across the UK with exceptional communication and rapid turnaround times.

“Our new office gives us a great base to bring our flexible approach to the London market. We pride ourselves on playing an active role within local property markets so we are now looking forward to partnering with local developers and investors in and around the capital on their upcoming projects.”

The office announcement comes after GB Bank secured its £85m investment from new backer 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.

Hera Holdings is privately owned by experienced finance and property entrepreneur Sameer Gehlaut who has a portfolio of real estate and financial services investments in the UK.

The investment allows GB Bank to raise its loan size to £10m per project, with a Loan To Value (LTV) ratio of up to 80%. To support its national expansion, GB Bank has launched a recruitment drive with aims to nearly double its workforce within the next year.

Since becoming a fully licensed bank in August 2022, GB Bank has approved more than £90m in loans to support over 130 property projects in locations from Northumberland to the south coast. It has also attracted over £300m in deposits from savers for its competitive fixed term and instant access accounts.

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