LAND Securities, said yesterday it would begin the £260m development of two buildings with offices, restaurants and shops near St Paul’s Cathedral, despite not having secured any potential tenants.

Britain’s largest commercial property developer said its decision reflected its confidence in the City office market.

The 379,000 sq ft New Ludgate development occupies an island site with two distinct buildings united by a new public square.

Construction will start on the site in August with completion scheduled for April 2015.

“We believe supply of new space will be constrained in 2015,” said Colette O’Shea, head of development in London at Land Securities.

The firm is also behind the Walkie Talkie tower, which it began building speculatively in 2011. It has now secured tenants for 56 per cent of the space.