South Bank Employers' Group (SBEG) has announced the four design teams which have been shortlisted to come up with a new look for Waterloo City Square in London.

Each of the four teams will present their design ideas for the square at a public exhibition this winter. The shortlisted candidates, EDAW, DSDHA, Lab Architecture Studio and Lifschutz Davidson Sandilands, will draw up plans to transform one of London's busiest transport hubs on the South Bank. The project will turn a series of complex subways surrounding the BFI IMAX cinema into a high-quality public space.

Chief executive of SBEG, Ted Inman, said: "This project is crucial in terms of linking the riverside area, which is largely regenerated, with the rest of Waterloo and Blackfriars, which is still in need of major investment." The design competition, which was funded by the London Development Agency (LDA) and P&O Estates, assessed the creativity, technical ability and financial viability of entrant's scheme. A detailed project brief and evaluation criteria will now be given to the shortlisted teams to prepare concept designs for the site.

Peter Bishop, the group director designate of design, development and environment at the LDA, said: "The plan to create Waterloo City Square is exciting and ambitious. The open competition attracted an extremely high level of interest. "We are confident that each of the four finalists will develop ideas which will challenge our perceptions of the site and excite and inspire local communities, commuters and Londoners, as well as the international audiences who know and visit the South Bank."