LBS Properties has secured a £135m senior development loan from ICG-Longbow to fund the construction of The Madison residential tower near Canary Wharf.
The loan to finance the 53-storey building, which will comprise 423 flats including 104 affordable homes, is the first deal that the ICG-Longbow Development Fund has done inside the M25.
“We had been keeping our powder dry in London, having been active in regional cities, but we now think there is a contrarian opportunity to deploy funds and to achieve sensible risk-adjusted returns,” said Adam Hayner, managing director of the ICG-Longbow Development Fund.
Since the scheme’s launch at the tail end of 2015, more than 35% of the private flats have been sold and Network Housing has agreed a deal with LBS to take the affordable homes.
LBS director Nick Crawford said that the deal marked a “significant milestone”.
“In the last 12 months, we have secured a strong forward sales position on both the market and affordable housing, appointed a main contractor and undertaken substantial early-stage construction works”.
The scheme, which was designed by Make Architects, features a hotel-style residents’ lounge, a gym, a swimming pool and a 24-hour concierge.
It is located a short walk from South Quay DLR and Canary Wharf Underground stations and is due to complete in 2020.