en.Wedoany.com Reported - Swedish builder Skanska has received permission to start construction on a new office building at 55 Old Broad Street in the City of London, a £282 million, 23-storey project expected to be completed by the end of 2029.

Demolition of the site will be carried out by Keltbray, with work having already begun earlier this year after Landsec and real estate-focused private equity firm Ashby Capital reached a financing agreement late last year. Landsec will continue to serve as the project's development manager, with the design by Fletcher Priest.

The plan, approved in November 2023, aims to replace a building constructed in the 1970s (which previously housed a pub and a bank on the ground floor) with 270,000 square feet of office space. Skanska took on the project earlier last year through a pre-construction services agreement and has now secured an October start date. Skanska will also be responsible for mechanical and electrical engineering as well as interior fit-out.

The project will include the renovation of a nearby Grade II listed building—the Victorian-era Bishopsgate Baths—as well as modifications to 65 Old Broad Street, adjacent to 55 Old Broad Street.

The news of the start provides a boost to London's commercial market. This follows Landsec's earlier announcement that it would scale back the planned office space, leading to delays. Tom Smithers, Property Director at Ashby Capital, said the scheme will create high-quality, sustainable spaces that meet the evolving needs of tenants while improving the wider public realm and injecting new vitality into this part of London. Ashby Capital focuses on creating design-led buildings that combine excellent environmental performance with outstanding amenities, and looks forward to working closely with Skanska and Landsec to advance the project.

Lee Marks, Executive Vice President at Skanska responsible for the company's building operations, added that the project will create high-quality, future-proof workspaces in a highly accessible business district, and the company is proud to partner with Ashby Capital and bring Skanska's expertise to a project of this scale and significance.

M&E consultant Atelier Ten, structural engineer Heyne Tillett Steel, and project manager Turner & Townsend are all members of the project team. Landsec acquired 55 Old Broad Street for £87 million in 2020, stating at the time that redeveloping the 10-storey building would create a "compelling top-tier destination" in the medium term.