British Land has signed an agreement with Portman Estate to pay £18m ($29m) to acquire and redevelop Marble Arch House in west London into a mixed-use scheme.
Designed by Bennett's Associates Architects, the new development is expected to cost £40m ($63m).
British Land plans to demolish two 1930-built five-storey buildings for a new 9,291m² mixed-use scheme on Edgware Road.
The scheme will comprise 5,575m² of office space with 1,394m² of retail space.
Ten luxury residential apartments with a 465m² restaurant unit at ground level will also be featured.
The development has detailed planning consent and aims to achieve BREEAM excellent environmental rating.
Demolition and ground works are expected to start in mid 2011 with completion slated for mid 2013.