Land Securities has confirmed that Boston-based real estate investment firm, Beacon Capital Partners, is to be its joint venture partner on the development of One New Change in the City of London

Beacon is understood to have agreed to pay around £80m, excluding development costs, for a half share in the joint venture.

The overall scheme has an end value of around £500m. It was granted detailed planning consent from the City Corporation of London earlier this year.

Designed by Jean Nouvel, the 560,000 sq ft (52,024 sq m) retail and office development will occupy a site to the east of St Paul's Cathedral.

The site comprises 220,000 sq ft (20,440 sq m) of retail over three levels, including four 25,000 sq ft (2,320 sq m) anchor stores, and 340,000 sq ft (31,590 sq m) of office accommodation.

Richard Linnell, head of investment management, London portfolio, said: 'We selected Beacon Capital Partners on the basis of their suitability from an initial list of 12. Beacon has an extensive track record in mixed-use development and understands the issues involved in delivering high-profile projects.’

Paul Parkinson, senior managing director of Beacon Capital Partners, said: ‘One New Change will be the first significant London development property within our new fund, Beacon Capital Strategic Partners IV. The project fits with our 'value-added' investment strategy, which focuses on our European target markets in London and Paris.’

Land Securities was advised by Strutt & Parker; Beacon was advised by Savills.