The City of London Corporation has approved plans for the construction of the tallest skyscraper in the financial district.

On Friday, the Corporation’s planning committee granted approval for the 74-story tower at One Undershaft. This new structure, positioned between the Gherkin and the Cheesegrater, is expected to reach a height of 309.6 meters (1,016 feet), surpassing the current tallest building in the City, 22 Bishopsgate.

Despite a slowdown in construction activities due to increasing costs, higher interest rates, and a vague outlook for the office market, there is still a strong demand for eco-friendly, well-connected, and luxurious office environments. This situation could lead to a potential shortage of high-end space, encouraging some developers to continue with premium projects.

“One Undershaft is a remarkable building that will not only meet the need for economic growth with its top-tier office spaces but will also contribute to enhancing the City’s cultural and tourist appeal,” said Shravan Joshi, chairman of the planning and transport committee.

The project is owned by Aroland Holdings, a company based in the British Virgin Islands, with Kuok Khoon Hong, co-founder of Singapore’s Wilmar International, designated as the beneficial owner. The design of the tower was conceived by architect Eric Parry and will be executed by Stanhope Plc.

Situated on the site of the former headquarters of Aviva Plc, the development will encompass around 154,000 square meters (1.7 million square feet) of office space, alongside public gardens, cultural venues, and dining options. A prior tower design received approval in 2019, but owners modified it to address post-pandemic corporate requirements. A decision on the new design was delayed this summer due to multiple objections.

The latest design is roughly the same height as London’s tallest building, the Shard, which is located across the River Thames near London Bridge station.

© 2024 Bloomberg

Stay informed with Moneyweb’s extensive finance and business news on WhatsApp here.