Demolition work starts this month on the project at Kensington & Park Terrace, which will eventually provide rooms for 345 students.
Buildings on Park Terrace will be demolished to make way for two new buildings, while Kensington Terrace will be predominantly refurbished.
The first phase of the construction work which is demolition and new build throughout Park Terrace gets underway this month.
Kensington Terrace will then follow a year later in April 2013 with an overall estimated completion August 2014.