$562m for London's tallest skyscraper

Work can begin on London's - and potentially Europe's - tallest building after initial funding worth £196 million ($562 million) was secured, its developers said yesterday.

The London Bridge Tower, which has been widely dubbed the "Shard" because it will look like an enormous shard of glass, is more than 305 metres high, has 72 storeys and is part of a 148,640sq m mixed-use development on the south bank opposite London's City financial district.

"We can start demolishing the existing building towards the end of next year and deliver the completed project between 2010 and 2011," said Irvine Sellar, chairman of the Sellar Property Group.

Sellar owns an equal share of the company behind the development - Teighmore Ltd - together with CLS Holdings plc and CN Ltd, which is part of the Halabi Family Trust.

The interim finance was provided by a syndicate of banks led by Nationwide Building Society. Part of funding has been used to buy an occupational lease held on the 1970s building that will be demolished to make way for the Shard, a statement said.

Almost half of the commercial space in the development has been pre-let, it added. That included two 30-year leases on 36,231sq m of space in the Shard with Transport for London and Shangri-La Hotels.

The Shard would be Europe's tallest building - higher than the 263.95m Triumph Palace in Moscow. But by 2010 it could be surpassed by another Moscow-based building, the 118-storey Moscow City Towers.

- REUTERS