Qatari loan prompts New Year start for Shard

Construction on the 66-storey Shard in London Bridge looks set to start next year, after the Qatari royal family secured a loan for most of the cash to build the £1.4bn contract.

Mace will build the 310m tower and is thought to have been told to keep costs to around £300m.

The loan to property investment company Qatari Diar, which will gain a seat on the board of the London Bridge Quarter company, means that work laying the foundations of Europe's talles tower will begin in January.

A spokesman for the investor said: "We take a long-term view of all our investments here and remain confident of their successful outcome."

Demolition and site clearance at the Shard will be completed in January 2009. Construction is expected to be completed in 2012.