MINERVA has scrapped plans to build a 50-storey building in the heart of London's financial district.
The developer, which is behind a number of off ice, retail and residential schemes in the capital, blamed problems with letting the 250 m-high structure near Liverpool Street station. The decision will now see the building shrunk down to 14 storeys.
A spokesman said: 'We have decided that, given the significant size of the Minerva Building and resources needed both of a technical and financial nature, it is too large a project to undertake.
'We have therefore taken the decision to proceed with St Botolph's House, a building we consider more deliverable and financially sound in the current development cycle.'
Skanska was set to build the original £300 million development but Minerva is still weighing up its options regarding the choice of a contractor.
The new building has been designed by Nicholas Grimshaw and will cost £110 million.
Demolition work to tear down an existing building will begin this autumn.
Construction is scheduled to start in summer 2007. The building is due to be finished by the end of 2009.