£3bn of Lending for Development

GB Bank is targeting £3bn of lending over the next five years and building a £1bn-plus balance sheet, according to chief lending officer Neil Williams.

The bank is gearing up to officially open in Q3 2022, once it receives its full banking licence without restrictions from the FCA and PRA.

It plans to enter the market with a competitive property development product, with accessible and bespoke loans.

“We will initially provide property development finance for both residential and commercial schemes, typically up to 24 months in duration, but we will consider longer terms where appropriate,” said Neil.

GB Bank will start off by offering development finance loans of between £500,00 and £5m, but will increase the maximum loan size as it grows.

In addition, Neil said the Teesside-based bank is looking to offer additional products and services that meet property developers’ various needs, including buying their next site before the one they are working on is complete.

Investment mortgages for completed residential and commercial properties are also on the list of services borrowers can look forward to receiving from the bank.

Having received its authorisation with restrictions licence from the FCA and PRA in October 2021, GB Bank has ambitions to finance almost 20,000 homes and several million square feet of office space, supporting the creation of over 100,000 jobs, according to Neil.

Filling the gaps

An authentic relationship approach and the provision of flexible lending structures still seem to be lacking in the development finance industry, believes Neil.

“With [many] lending decisions not being local and lending policies sometimes being rigid, developers are often all treated the same.

“It is not unusual to hear of relationship managers of other funders travelling 100-plus miles to undertake a transaction and then drive home. This feels more like commoditised lending vs a local relationship-led one which GB Bank’s will be.”

With the company’s relationship managers based locally, customers can expect a quick and convenient service and more traditional methods of communicating.

Source: Development Finance Today