Construction of the £500 million Walkie Talkie started yesterday following a groundbreaking ceremony.
Piling for the Rafael Vinoly designed building will commence this week with completion to ground floor planned for February 2012 and final completion anticipated in early 2014.
The site, which formerly housed some ancillary retail neighbouring holdings, was sold by Land Securities to the partnership for £90.2 million, putting an end to months of negotiations.
The 37 storey scheme will bring much needed Grade A office space to a supply constrained central London market in 2014. Around 300,000 sq m of leases are expected to expire or see breaks exercised per annum during the next four years.
Land Securities’ London portfolio managing director Robert Noel said: “In January 2010 we were the first property company to commit to starting major developments in London in this cycle, as we saw a supply constrained market evolving for prime office space between 2012 and 2014.
“In starting work on 20 Fenchurch Street with the Canary Wharf Group today, we begin an exciting journey that will bring together our complementary skills in development, leasing and construction to create a new landmark for London.”