The £1bn Pinnacle skyscraper could be "knocked down and built from scratch"

More modest tower to be erected instead to lure in commerical renters

The £1bn partially-constructed Pinnacle skyscraper is at risk of being “knocked down and built from scratch”, the FT has reported.

The spiralling building, intended to be one of the tallest in the City, was originally designed to be 63 storeys high. But, with only seven floors erected so far, concerns have been raised over its completion.

Instead, a more conservative skyscraper would be built, in hopes that lower rents would attract commercial tenants.

So far demand for the commercial space has been slim, with few big names stepping up to secure a spot in the ultra-luxury building.

Construction subsequently stalled last year, when the financial viability of the building was questioned.

The skyscraper, conceived by architects Kohn Pedersen Fox and developed by property specialists Arab Investments, is more than twice the price of the Shard, which was completed last year for some £450m.

Arab Investments last month received an extension of bank financing for the project, but are using the breathing period to reconsider “all options” for the tower. A decision is expected to be reached in the next three months.