The scheme will see a run-down 1.5 acre site developed to create two new retail premises and a 253 bedroom, hotel-style accommodation for students at the nearby University of Central Lancashire.

Eric Wright Group’s construction division plans to start demolition work on the site in late autumn.

The whole project will take 12-14 months to deliver.

Anthony Jackson, chairman of Portergate Properties, said: “The appointment of Eric Wright Construction underlines our commitment to utilising the skills of local companies wherever possible during the construction work, helping to create and secure local jobs in the sector.

“That is very important to us as a North West company.

“This will be the biggest building project in Preston and the development will play a key role in our continued expansion plans in the North West.”

John Wilson, managing director of Eric Wright Construction, said that up to 200 workers will be employed on the Friargate development site.