A derelict site close to St Paul's Cathedral in the City of London that has lain vacant during the financial crisis looks set to be finally redeveloped after a deal between Axa Real Estate and the site's owner, Iranian-born collector and philanthropist Nasser D Khalili.

Khalili's Favermead has entered into a partnership with Axa Real Estate, the Paris-based fund manager, which has €39.5bn of assets under management, to develop 60 Holborn Viaduct.