Sir Robert McAlpine and Skanska are currently battling it out for the scheme which consists of a 600,000 sq ft office element and a separate 50-storey resudential tower on Bishopsgate.

A winner will be announced shortly for the contract but no start date will be confirmed until a new tenant is found.

Hammerson has detailed planning approvals for the offices as well as the 50-storey residential tower, which will be built under a separate contract worth up to £195m.

The whole project has a construction timetable of two years from when work starts.

Hammerson chief executive David Atkins said: “I have consistently said that in current conditions we would not expose our shareholders to excessive risk through building London offices on a speculative basis, which remains our policy.

“We have made good progress with the design and planning of Principal Place over the last six months, which I am confident will further improve its appeal to potential occupiers, and we continue actively to seek office tenants.”

Law firm CMS Cameron McKenna was lined-up as tenant for the scheme.

But senior partner Dick Tyler said: “As a result of the current uncertainties in financial markets, we decided not to enter into a significant long-term premises commitment.”