The developer has now committed £14m for the detailed design of the 19-35 Baker Street mixed-use scheme

This will enable Derwent to tender the building contract early in 2021, ahead of commencing work on site in the second half of 2021.

It is aiming to start work on a major mixed-use at Baker Street in the second half of next year, with completion expected in 2025.

Paul Williams, Chief Executive of Derwent London, said: “As we enter a second national lockdown in response to the global Covid-19 pandemic, we continue to work closely with our occupiers, business partners and communities.

“The significant operational progress made in the third quarter and the group’s strong financial position give us the confidence to commit to our next major development at 19-35 Baker Street.”

The 19-35 Baker Street project will involve 206,000 sq ft offices, 52,000 sq ft residential and 35,000 sq ft retail. Designed by architect Hopkins, it will rise to 10-floors.

Derwent said it continued to evaluate other potential schemes and later this year would apply for planning permission to redevelop the Network Building in Fitzrovia.

This could provide at least 100,000 sq ft of commercial space with a potential start in 2022.