Developer Regal London has secured a £29.5m loan from Secure Trust Bank Real Estate to develop a 156-bed aparthotel and café in Whitechapel.
The developer received planning permission for the scheme last year, and has pre-let the space to Staycity on a 30-year lease.
The loan will help kickstart development and the building, on Commercial Road, is expected to complete in 2021.
This is the second deal between Secure Trust Bank Real Estate and Regal London. The retail bank offers loans of up to £45m for both residential and commercial property developers.