The Feethams Leisure project will regenerate a 1.9 acre former bus station in the town centre into a cinema, hotel and restaurant complex.
Completion is expected in autumn 2015.
The scheme will be anchored by a nine screen multiplex Vue cinema and include an 80 bed Premier Inn Hotel, as well as a number of restaurants, bars and shops.
Lettings have already been secured to national operators Nandos and Prezzo, with two further restaurant units under offer to other national brands.
Philip Leech, Chief Executive of Terrace Hill, said: “We are working on a number of planned leisure development schemes across the UK.
“Leisure is a sector with strong occupier demand and with regional economies starting to improve we forsee increasing opportunities for us in this area.
“Our network of regional offices also gives us unique insight into this market.”