The 500,000 sq ft project will involve demolition and the redevelopment of the Derry’s Cross site in the city centre to build a 170-bed five-star hotel, another hotel with 140 beds, and 253 student bedrooms as well as retail and office space.
Lawrence Butler, chairman of Devington Homes, said the firm was in serious talks with the hotel chain Accor and has an agreement with Plymouth University to fill 253 student rooms.
The landmark project is also earmarked for Government funding from the second bidding round of the Get Britain Building fund for stalled housing schemes.
He revealed that three main contractors had been approached to build the Oceanique scheme, which will be the tallest building in the city once completed.
Davis Langdon is project manager for the job and Hyder the structural consultant.