ICG-Longbow has provided £135m (€158m) of finance for a UK residential development.

Developer LBS Properties said it will use the senior development loan for its 53-storey residential tower scheme in east London.

The Madison project, near Canary Wharf, will include 423 units.

LBS said the development is 35% sold, with completion due in 2020.

Adam Hayner, managing director of ICG-Longbow’s development fund, said the tower is the lender’s first major construction loan on an asset within London’s M25 orbital motorway.

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.”