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ISG has won a 拢29m tower project in the City of London for real estate investment trust McKay Securities.

The contractor said in a statement to investors the contract was a two-stage design and build job.

The firm will deliver 58,000 sq ft of category A commercial office space in a 12-storey building with terraces on floors seven and nine.

ISG will demolish the existing 1960s office building shortly, with completion of the new speculative development expected in early 2018.

Knight Frank and Savills have been appointed as letting agents to market the building to potential occupiers.

Simon Perkins, managing director of McKay Securities said: 鈥淭he appointment of ISG is an important step towards the delivery of this prime redevelopment. This will be an attractive workspace in the heart of the City of London. The supply of new buildings for mid-sized occupiers looks set to remain constrained and we are confident that this scheme will be well received by the market.

鈥淲e look forward to working with the team at ISG, who are highly regarded for their construction expertise in the City.

鈥淭his exciting project is in addition to our speculative office schemes in Redhill and Reading, which remain on programme for completion in H1 2016. These three schemes currently have a combined rental value of c. 拢5 million pa in markets where lack of supply continues to generate rental growth. We look forward to updating shareholders on progress with our interim results in November.鈥�