Demolition contractor Erith has started construction on £400m Marble Arch Place, which is the development being carried out by Almacantar and The Portman Estate.
Brookfield Multiplex was also confirmed main contractor for the project, which will see the existing 1960s building replaced with a new residential, office, and retail scheme.
Scheduled to be completed in 2020, the development will include an 18-storey residential tower, 54 apartments, and a seven-storey commercial building providing a total of over 95,000ft² of offices.
The new rooms will have views of Hyde Park, with several floors featuring large terraces.
Almacantar's property director Kathrin Hersel was quoted by constructionenquirer.com as saying: "Marble Arch Place will be a stunning new landmark for London, an enviable residential and commercial address where the sophistication of Mayfair meets the calmness of Hyde Park.
"The scheme's design and position makes it a prominent new addition to a flourishing West End."
Almacantar will also be responsible for building a new multi-screen Odeon cinema and new retail spaces with cafes, restaurants, and shops.
The Portman Estate property director Oliver Fenn-Smith was quoted by costar.co.uk as saying: "Marble Arch Place will significantly contribute to the ongoing transformation of the area and this iconic gateway to London's West End."