The Crown Estate has selected City Offices and Morley Fund Management as its development partners for a£100 million project on London's Regent Street.
The Crown has already won planning consent to redevelop Chesham House at 132 Regent Street with 100,000 sq ft (9,300 sq m) of retail and office space.
David Shaw, head of Regent Street strategy and development at the Crown Estate, said: 'With this strong partnership, we believe we will ensure that our vision to extend Regent Street's reputation as a unique international destination will be fulfilled.'
The scheme will comprise 33,400 sq ft (3,100 sq m) of retail space fronting Regent Street on the ground, lower ground and first floors. On the upper floors, 72,000 sq ft (6,690 sq m) of offices will be created, with access from Warwick Street.
Under the terms of the deal with City Offices and Morley Fund Management, the Crown will receive a proportion of the rents from the office space, but it will retain full control of the retail element. This is part of its strategy to manage the tenant mix on Regent Street.
Work is scheduled to start on site in November, with completion expected in September 2005.
The Crown Estate was advised by Richard Ellis.