The west London scheme will be built speculatively but the developer sounded a cautious note about property’s prospects in its final results today.

The firm is also looking to start construction this year on two new buildings at Paddington Central at Four and Five Kingdom Street.

But Development Securities said it is not about to kick-start a major round of speculative schemes as demand remains uncertain from tenants.

The firm will focus development activity on London and the South East.

It said: “Outside the South East, speculative development of commercial offices will be a rare phenomenon in current markets.”

Development Securities is cranking-up its residential arm and is currently preparing a tender to transform 22 office suites at Westminster Palace Gardens into luxury flats.

The firm has also paid £5m for a house on the Sandbanks peninsula in Dorset which will be redeveloped into four apartments.

Results for last year showed the firm made a pre-tax profit of £2.6m compared to a loss of £11.4m in 2009.