A joint venture partnership between European fund manager Aerium and UK developer-investor Terrace Hill has received the green light for an office-led redevelopment in Mayfair, London.

Having acquired the property in January last year from Prupim, the JV drew plans to transform the two 1960s office blocks into a single, six storey Grade-A office scheme, with retail over the basement and ground floors. The scheme will comprise a total of 22,500 sq ft (2,100 m2) of office space and 9,000 sq ft of retail. The JV intends to start work on site this spring in order to deliver the scheme onto the market in summer 2013.

'This is one of three Central London schemes we are currently undergoing as part of a more opportunistic strategy,' said Aerium's UK fund manager Robin Carr. 'With a shortage of high-quality office space both in terms of current supply and that forecast to come to the market, we believe that this well located, prime Mayfair property has the potential to take advantage of strong occupier demand when it is delivered onto the market.'

Cushman & Wakefield and CBRE have been appointed as the joint letting agents for office space. Savills and CBRE have been appointed as the agents for the retail element.