The new Northminster development will see 315 flats built as well as 37 townhouses.
There will also be ground-floor leisure and commercial space below the flat blocks.
Willmott Dixon is going offsite for many of the elements including a light-gauge steel frame, brick slips and bathroom pods, which will help to ensure quality, programme certainty and come with environmental benefits.
The 10-storey development, which will finish in August 2024, is being part-funded by Cambridgeshire and Peterborough Combined Authority, with homes let at discounted rents, set at or below 80% of the normal market rate.
David McCallion, director at Willmott Dixon, said: “This is such an important regeneration project for Northminster and we are looking forward to working alongside our delivery partners to revitalise the area for residents and the wider community.”