U and I Group, which is the new name for Development Securities, has secured planning permission for the mixed-use redevelopment of the Valentine's House office block next to Ilford station.
The planning consent enables U and I to add four storeys to the existing building to create 122 residential units and 1,500m2 of ground floor retail space for shops.
U and I has also struck a deal with property investor IP Global for the bulk sale of all 122 flats. This is U+I's second deal with IP Global, following the pre-sale of 121 residential units at The Deptford Project in South London.
U and I has secured £30.7m of construction debt for the redevelopment of the building which is expected to start on site in the first quarter of 2016 and to complete before the end of 2017, in time for the opening of Crossrail at Ilford station.
U and I chief executive Matthew Weiner said: "The redevelopment of Valentine's House will transform a run-down, vacant office block into a fully refurbished residential and commercial building for Ilford. Designed by leading architect, Sir Terry Farrell, the building is being refurbished to the highest standards to create a desirable residential product in an otherwise undersupplied market in suburban London."