Work is now expected to start in 2013 and completion is expected in 2016.
The new development will replace three existing buildings on the corner of Shoe Lane and Little New Street, EC4 with one dramatic building providing approximately 250,000 sq ft of contemporary office and retail accommodation.
It will offer vital grade A office space for London’s Midtown market combined with views of St Paul’s Cathedral.
The scheme, designed by Robin Partington Architects, will also bring restaurants and retailers to the area, enhance the pedestrian route through Athene Place.
Colette O’Shea, Head of Development, London Portfolio, Land Securities, said: “New Street Square has become an important London location and has helped put Midtown on the map.