Multinational oil conglomerate Shell International has picked Canary Wharf Group and Qatari Diar as the preferred parties to develop one of London's most sought-after construction sites - the Shell Centre on London's South Bank.

In a statement, London-based property developer Canary Wharf said it has entered into a 50:50 joint venture with the real estate arm of the Qatari sovereign wealth fund to secure the 21,000-m2 site on a 999 year lease. The partners are contributing £150 mln (EUR 171 mln) each to the new venture, with payment conditional on planning permission being received for the project within three years.

The development will be mixed-use, comprising office, retail and residential space. The 27-storey tower in the middle of the Shell Centre will be preserved and retained by Shell. Shell will also take 210,000 sq ft (19,500 m2) in one of the new office buildings.