The proposals include a 269-bedroom hotel, student housing and 2,000m2 of commercial space. The 575-bedrooms student housing element of the scheme will be operated by Unite Students. A hotel operator has yet to be signed up.
A shopping centre will be demolished to make way for the new development.
Plans for a previous scheme for the Newgate Street shopping centre site were changed following consultation with, among others, Newcastle City Council and Historic England. The student and commercial elements have been reduced and the hotel size increased.
McAleer & Rushe project director Graham Mitchell said: “This scheme has evolved through extensive consultation with many stakeholders. Today’s announcement is the culmination of a lot of hard work, engagement and collaboration to deliver the best possible scheme. We hope to start on site in 2016 and to deliver the student element by summer 2018. However this is a very challenging site and there are still a number of complexities across the 1.75 acre site, particularly in terms of the prominent city centre location, that we have to resolve.”