Developer British Land has committed to a £1.5bn development programme in the London office market, it announced on Tuesday

The investment, two-thirds of which will be paid for directly by British Land, will create 2.1 million ft2 of office space in the capital.

It includes the restarting of Richard Rogers’ £170m “Cheesegrater” tower in the City, and the 700,000ft2 redevelopment of the Broadgate Estate, above Liverpool Street Station, in
a joint venture with Blackstone, both previously announced.

Chris Grigg, chief executive, said: “At £1.5bn, we have committed to London’s largest office development programme, focused on the City and the West End, which is timed for delivery when we believe strong demand and supply constraints will coincide.”

The firm said construction of the Cheesegrater would begin in July next year, with practical completion to shell and core finished by the second quarter of 2014.

It said work was under way on its £224m, 500,000ft2 redevelopment of the Regent’s Place estate, with completion scheduled for the second quarter of 2013.

In addition, the firm said it would build more than 850,000ft2 of retail space as rental values recover.

British Land made the announcement as it reported group underlying profit of £127m for the past six months, and a rise in the value of the company’s portfolio of 4.2%, to £4.33bn.