British Land signs "cheesegrater" contract

British Land and Oxford Properties have signed contracts for a 50:50 joint venture to develop the Leadenhall building.

The company, which sidelined the project during the recession, said corporations had expressed interest in the building.

Oxford Properties is real-estate arm of Ontario Municipal Employees Retirement System (Omers) pension fund,

Dubbed the ‘Cheesegrater’ because of its wedge-shape design, the 47 storey, 736 ft (224m) tower will be a landmark in the Square Mile.

Work is expected to begin early next year and the shell and core should be finished by the middle of 2014.

The total development cost of the 610,000 sq ft development is expected to be around £340m.

Oxford Properties is the real-estate arm of Ontario Municipal Employees Retirement System (Omers) pension fund,

British Land’s initial contribution is the land, valued at £90m, while the Canadians are coming up with the first £90m to get the project moving. Further development costs will be shared 50:50, taking the UK firm’s contribution in addition to the land to about £125m.

“We believe that the Leadenhall Building will provide the City of London with a unique combination of iconic architecture with world-class public and office spaces,” British Land chief executive Chris Grigg said.