Mace and Mac duel it out

Mace and Sir Robert McAlpine are set to lock horns again for another prized Land Securities scheme coming up in the ravaged London commercial property market.

The pair - who have also been joined by Skanska - are chasing the job to replace a rundown 1960s office building in Victoria called Selborne House and replace it with new offices, shops and restaurants.

The deal is set to carry an estimated price tag of £100m and will see the office space built across 12 floors, with the shops and restaurants situated at ground level.

Demolition contractor Keltbray will start soft strip work on the 40,000 m2 building in the next few weeks with a view to beginning main demolition work next year - although it hasn't yet been awarded this part of the contract.

One source said: "I don't think Land Secs want this to come down until they've seen the prices from Mace and McAlpine. There's no point doing main demolition until they know things have picked up and they can afford it."

Mace and McAlpine are already back in the running for the on-off £100m Park House scheme on Oxford Street.

This job will feature three floors of retail, plus high-end apartments and has already seen both contractors think they have captured the scheme only for client Land Securities to change its mind.

In a recent interim management statement, Land Securitiess confirmed it was "in the process" of firming up plans for both Park House and Selborne House to start on site in 2010.