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LBS Properties secure £135m development loan for Madison tower

London developer LBS Properties has announced it has secured a £135m senior development loan from ICG-Longbow for its The Madison development.

The development, which sits adjacent to Canary Wharf, comprises a 53-storey tower that will house 423 studio, one, two and three bedroom homes, which includes 104 affordable homes along with residents facilities.

Designed by Make Architects, construction on the £150m is set to kick into gear following the loan and the appointment of Balfour Beatty to deliver pre-construction services on the site earlier this month.

Nick Crawford, Director at LBS Properties, commented: “Signing the development loan with ICG-Longbow marks a significant milestone for The Madison.

“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. We are looking forward to working with ICG Longbow as construction progresses over the coming months.”

Scheduled for completion in 2020, the development is already over 35% sold and will benefit from the short link to the new Canary Wharf Crossrail station and the South Quay DLR.

Adam Hayner, Managing Director of the ICG-Longbow Development Fund, said that the funding represents their first ‘major construction loan’ within the M25.

He said: “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.

“LBS Properties and their development team have a proven track record and we are delighted to be supporting them on this landmark project.”

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