Cheesegrater tower faces delays

British Land may delay the construction of its planned London skyscraper dubbed the Cheesegrater as demand for offices dries up.

The firm said today that it was reviewing plans for the 225m tower designed by Richard Rogers in light of the property downturn.

In its trading results the company said: “We are reviewing the timing of construction and target completion in order to optimise cost and occupational demand.”

Demolition work on the site at 122 Leadenhall Street is on track with completion originally expected in 2011.

But according to the Financial Times, people familiar with the company’s plans say the project lacks a clear timetable for completion.

British Land's trading results showed underlying pre-tax profit for the quarter to 30 June at £74m but its portfolio valuation down 5% this quarter to 5.8%.