Joint venture developers Arlington Real Estate and the Richardson family can now deliver the first phase of development at Milburngate.
Carillion was originally earmarked to build the Durham Riverside mixed-use scheme.
The JV is now prequalifying contractors to deliver 400 new riverside properties and 150,000 sq ft of office space, also featuring an Everyman Cinema as the centrepiece of the site’s leisure offering.
An invitation to submit tenders from shortlisted contractors will be issued in the coming weeks.
Construction of Zone One is expected take 30 months while Zones Two and Three would take 36 months if developed simultaneously..
Milburngate has already attracted a range of premium occupiers including the Everyman boutique cinema, Pitcher & Piano and the new concept steak restaurant Bar + Block.
They will be joined by a 92-bed Premier Inn hotel; a detailed planning application for which will be submitted separately to Durham County Council.
Allan Cook, Managing Director of Arlington Real Estate, said: “The delivery of this transformational project will have a positive impact that reaches beyond the City’s boundaries and will help attract people to Durham from across the North East and further afield.”