Doughty Hanson & Co Real Estate and UK property developer and investor Terrace Hill have announced that they will begin construction on their joint office and residential scheme, One Howick Place in London, next month.

The business partners have appointed Kier as construction partner. Aareal Bank is providing debt funding for the development.

The new Rolfe Judd-designed project, located in Victoria, London, was granted planning consent in January 2009. With demolition of the existing structure already underway, the expected date for completion of the new development will be autumn 2012. Once complete, One Howick Place will comprise 139,000 sq ft (13,000 m2) of Grade A office space over eight floors, 33 residential apartments and 1,000 sq ft retail unit.

The scheme will include a number of energy saving environmental features helping it to achieve a targeted Breeam rating of 'Excellent'. 'We consider that this new, high-quality scheme will make a significant contribution to the progress already made in the redevelopment and regeneration of Victoria,' said Julian Gabriel, head of Real Estate at Doughty Hanson.

Philip Leech, Chief Executive of Terrace Hill, added: 'The completion of the development in the autumn of 2012 is designed to coincide with a period when growth in occupier demand will be set against a backdrop of very limited competing supply. We are already seeing rental growth in the Victoria office market which we expect to be sustained over the next three to four years.'

C&W and CBRE have been appointed to act as letting agents on the commercial side of the development.