The project is expected to transform the Friargate area of Preston with new shops and a 253-room accommodation block for students at the nearby University of Central Lancashire.
Eric Wright Construction, which is based in Preston, plans to start demolition work on the site within the next few weeks and complete by the end of 2015.
Portergate Properties chairman Anthony Jackson said that he had been committed to using a local building firm. “The appointment 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 northwest company,” he said.
He added: "We went through a detailed and thorough process to ensure that we have appointed the very best firm to deliver this important development project."
Eric Wright Construction managing director John Wilson said: "The fact we have been appointed to such a high-profile scheme in our home city is fantastic news. Portergate has done an amazing job in moving this development forward and we can't wait to get started to turn their vision into reality.
"The development on Friargate is a great site and will be high quality, well-designed buildings that will play a big part in the regeneration of that quarter of the city.”
The development plan has been created by Manchester architecture practice Leach Rhodes Walker.