Metrovacesa has won the battle to develop Legal & General’s Walbrook Square scheme in the city of London beating Helical Bar and the Carlyle Group.

The Spanish company was selected as the preferred bidder with a bid of around £240m. In a statement, released today it said it would demolish the exisiting buildings on the site and redevelop the 1m sq ft scheme with work to be completed by no later than 2015.

The property group will hold the rights for a 250 year lease-hold on the property as part of the deal. To finance the initial costs of the project, Metrovacesa said it would use funds from its recent capital hike and from the sale of non strategic assets.

The 1m sq ft mixed-use development, which sits on a 3.7 acre site next to Bank and Cannon Street Tube stations, was designed jointly by Lord Foster and Jean Nouvel. It will comprise four buildings with more than 875,000 sq ft of office space and 95,000 sq ft of retail and restaurant space. The City of London granted planning permission in July. The scheme was given consent after the Greater London Authority made changes to the protected sightlines to St Paul’s Cathedral, which allowed L&G to increase the size of the scheme.

The news will be a blow to Helical which planned to use the scheme to launch its return to the central London development drive.

Jones Lang LaSalle advised Legal & General. Colliers CRE advised Metrovacesa. GVA Grimley advised Helical Bar and Carlyle.