Skanska has signed a £197m contract to develop two new office building in London’s Mayfair.

A joint venture of Grosvenor and Mitsui Fudosan UK has signed the contract with Skanska for the planned offices scheme in South Molton.

Skanska will lead construction of two new office buildings that form part of the wider redevelopment of South Molton.

Totalling 24,800sq m (267,000sq ft), the project involves the demolition of existing buildings and construction of two new buildings to provide a total of 13,800sq m (149,000sq ft) of offices fitted out to category A standard.

The project also includes the provision of retail, leisure, food and beverage outlets, including the renovation of the Running Horse public house.

The building is targeting environmental standards BREEAM Outstanding for offices and Design for Performance to secure a NABERS 5* accreditation. It’s also targeting WiredScore Platinum certification.

Skanska has been working with the Grosvenor and Mitsui Fudosan UK JV since October 2022 to evolve the design and construction methodology for South Molton, including identifying sustainability and carbon reduction strategies.

This process has reduced steel usage by 200 tonnes, with the re-use of existing steel elements, pre-fabrication of façades and in-situ construction of the concrete base slab all contributing to a reduction in carbon emissions.

“We have enjoyed a fantastically collaborative working relationship with the Grosvenor and Mitsui Fudosan UK JV team over the past two years,” said Terry Muckian, managing director, building.

“This has led to a design and method of construction that reduces carbon and de-risks programme delivery in what is a complex working environment in the heart of London’s West End.

“We have a long history and deep understanding of the London commercial office market and we are delighted to be continuing this with South Molton.

“South Molton is an exciting development for this internationally recognised part of London and I know our team are really looking forward to playing their part in bringing it to life.”

Construction has started and is expected to be complete in July 2027.