Demolition of existing buildings is already well underway and Kier is due to start work on the 280,000 sq ft One Howick Place scheme later next month.

The mixed-use redevelopment will see the contractor build high quality offices, alongside 33 apartments and ground floor retail space.

The building will boast several energy saving features including combined cooling and heating plant and photovoltaic cells on the roof.

These measures will help the building achieve BREEAM rating of ‘Excellent’.

Philip Leech, Chief Executive of Terrace Hill, added: “The completion of the development in the Autumn of 2012 is designed to coincide with a period when growth in occupier demand will be set against a backdrop of very limited competing supply.

“We are already seeing rental growth in the Victoria office market which we expect to be sustained over the next three to four years.”