Principle contractor Mace will work with Network Rail as part of the wider redevelopment of Birmingham New Street station and the Pallasades shopping centre.

The new 250,000 square foot John Lewis department store will anchor an upgraded Pallasades Centre, creating a new retail outlet in the heart of Birmingham.

Work to develop the Pallasades Centre began in 2011, followed by the demolition of Stephenson Tower in early 2012 to pave the way for construction to begin on John Lewis.

The superstructure of the store will start to take shape over the coming months with John Lewis, and the new Pallasades Centre set to open in autumn 2014.

The development will open up New Street station to the city’s south side for the first time, helping to stimulate regeneration and economic growth.

Mark Reynolds, Deputy CEO at Mace said: “We are excited to have started work with the John Lewis Partnership on the south side of the Birmingham New Street project.

“It marks the achievement of another major milestone for the project while also commencing something which is, on its own, greatly rewarding for the city of Birmingham.”

David Higgins, chief executive at Network Rail said:  “With a new John Lewis and Pallasades coming in 2014, and a state of the art station complete in 2015, Birmingham has a lot to look forward to.”