The four-building development, in Holbeck Urban Village on the south side of Leeds city centre, will have 744 apartments, ranging from studios the three bedrooms. The architect is Hodder+Partners.
Landscaped areas, basement car parking, access control and a dedicated area for concierge and management services will also be provided.
The development is scheduled for completion in June 2019.
Dandara project director Sean O'Connor said: "The private rental sector (PRS) is already providing accommodation and can help deliver the homes needed by those who want to live and work in Leeds and other major UK cities. This project will create numerous local employment opportunities and we look forward to working with Interserve to deliver these 744 high quality PRS apartments in the city centre."
Interserve chief executive Debbie White said: “This contract is an exciting addition to Interserve's growing portfolio of accommodation projects and adds to our already extensive presence in the Yorkshire region."