Mike Hussey's Almacantar, which bought Marble Arch Tower two years ago for £80 million, has decided to scrap the 24 storey tower building and start again with a  £450 million Rafael Viñoly-designed scheme of two buildings one 17 storeys and the other 7 storeys, totalling 408,000 sq ft.

The proposed scheme, which sits at the corner of Oxford Street and Edgware Road will comprise 52 private apartments totalling 210,000 sq ft, 123,000 sq ft of offices, 36,000 sq ft of retail and a revamped 39,000 sq ft Odeon cinema. Construction is expected to start in 2015 subject to planning consent and will be completed in 2018.

The 17 storey, Western building will include apartments and shops at ground level, while the 7 storey Eastern building will be  commercial office space with shops on lower ground, ground and first floors. The scheme will incorporate a new flagship retail unit of up to 15,000 sq ft. Odeon have a long lease on their building dating to March 2090.

“Almacantar’s strategy is to reposition large-scale, complex commercial and residential assets in Central London,” said Mike Hussey, Chief Executive of Almacantar.

In addition to Marble Arch Tower the firm also owns Centre Point at the other end of Oxford Street, which it refinanced earlier this month with a £220 million loan from Starwood Property Trust, to assist it's redevelopment of the building into a mixed-use scheme with 82 flats.

The flats in the proposed new Marble Arch development will be near the top of the London price range at a similar level to that of The Lancasters, Hyde Park; and The Chilterns, W1.

Kathrin Hersel, development director of Almacantar, said: “This landmark development will be a catalyst for the on-going transformation of the West End of Oxford Street, improving the streetscape for the 15 million people who pass through Europe’s busiest shopping thoroughfare each year as well as creating a world class residential and office scheme in a prestigious, Central London location.”

Almacantar is also proposing to build a new Terry Farrell designed mixed tenure housing and retail scheme nearby at 466-490 Edgware Road, which will have a gross development value of £70 million.

On this development Hersel said: “Our proposals for Edgware Road will accelerate the wider transformation of this part of Westminster and reinstate a retail street frontage on this part of Edgware Road for the first time since the Victorian era. Importantly, it will deliver much needed, high quality, affordable housing in Westminster – including new townhouses and 4 bedroom apartments, all of which benefit from gardens, terraces or balconies.”