Source: The Canadian Press

British Land Co. Plc. has agreed to co-develop a 47-storey office tower in London’s financial district with one of Canada’s largest pension managers, the Ontario Municipal Employees Retirement System.

The Leadenhall Building is expected to cost 340 million pounds, or $544 million, to develop.

Work has already begun, with the demolition and preliminary basement structure completed. The shell and core of the new building is expected to be completed in the second quarter of 2014.

British Land, which announced the preliminary agreement to create the 50-50 venture with Oxford Properties, a subsidiary of OMERS Worldwide, said the final agreement is expected to be signed by the end of the year.

“We are delighted to be announcing the development of the Leadenhall Building,” Chris Grigg, British Land’s CEO, said Monday.

“With its unique and iconic architecture, it is a building which will provide an unbeatable combination of style, presence, location and office floor space in the heart of the City of London.”

British Land is one of the largest real estate investment trusts in the United Kingdom, with about one-third of its portfolio in central London.

Oxford oversees and manages approximately $16 billion of real estate for itself and on behalf of its co-owners.