Numerous national high street retail chains have already signed up for space on the 10-acre Flemingate centre, which is being developed by Hull-based Wykeland Group. There will also be a cinema and a multi-storey car park.
It is scheduled to open to the public by Christmas 2015.
Willmott Dixon regional managing director Anthony Dixon said: “Flemingate is a fantastic scheme for the whole region, attracting inward investment that will bring long-term economic and leisure benefits to Beverley. We have a strong track-record in the county and are looking forward to delivering a truly great shopping and leisure facility.”
East Riding of Yorkshire Council leader Stephen Parnaby welcomed the start of work. He said: “The development and planning process for this land began way back in 2005, if not earlier, and the company is to be congratulated for now being able to deliver such an important scheme. It is just what the town needs.”
He added: “While Beverley is a thriving, bustling community of independents shops which give the town its character and offer fantastic, artisan products they would not get elsewhere, but the town lacks the commercial space needed to accommodate large national retailers that have wanted to come here for many years but have not been able.”