Construction of a new skyscraper, set to be Japan's tallest building with a height of about 390 meters, has begun near Tokyo Station, developer Mitsubishi Estate said.

The Torch Tower, expected to be completed in March 2028, will surpass the 330-meter Azabudai Hills Mori JP Tower in the capital's Minato Ward, which is currently the tallest building in the country.

"This is a huge project to update the city's infrastructure and buildings at the same time," company President Atsushi Nakajima said at a groundbreaking ceremony held on Wednesday.

"We hope to make it an area that attracts people from all over the world," he said.

The construction is part of Mitsubishi Estate's redevelopment project covering a 3.1-hectare area near Tokyo Station. The Japanese company has already built the 212-meter-high Tokiwabashi Tower in the area.

The Torch Tower will house an entertainment hall with a capacity of around 2,000, along with Britain's Dorchester Collection luxury hotel chain, offices and an observation facility, according to the developer.

The name of the building reflects the developer's wish to light up Japan, the company said. The shape of the building was designed with a torch motif so the light from the upper floors will be visible to passers-by, it said.