The £30m Riverwalk project will transform the city’s retail and leisure offering and includes 253 student rooms.
Sir Robert McAlpine will remodel the existing shopping centre’s layout to create 35,000 sq ft of terraced restaurants along the river, 23 refurbished shops and a six-screen Odeon cinema.
The job involves removing parts of the centre’s roof and partition walks to create a new public square at the heart of the development.
Nick Berry, Partner at Clearbell Capital, said: “The project team has been working meticulously over the past few months completing enabling works, however now we will start to see the redevelopment work taking shape.”
Mark Gibson, North East Regional Manager for Sir Robert McAlpine, added: “This technically challenging project which will transform Durham’s retail and leisure facilities for residents and students alike.”