In addition there will be two ground floor units that have been earmarked for use as leisure or hospitality outlets.
It is intended that all the apartments will be offered at discounted rents, set at or below 80 per cent of the normal market rate - in a bid to maker it easier to afford high-quality homes in the city centre.
Peterborough sex offender jailed after performing act near children's park
Major disruption on railways between Peterborough and London due to overhead line damage
Mum of five facing wait for new home after being told she faces eviction from St Michael's Gate today
Fun day at Peterborough park returns after three years
Kebab shop caught employing illegal workers has licence transfer refused by city council
A ground breaking ceremony to mark the start of work was attended by Peterborough City Council leaders and developers.
Civic leaders say the development will revitalise the Northminster area with new housing and commercial opportunities alongside improved public space at Laxton Square.
The site has been made available with the demolition of the Solstice nightclub, the relocation of Peterborough market and the demolition of a multi-storey car park.
Councillor Wayne Fitzgerald, council leader, said: “This is a key regeneration site for the city.
“City centre living brings many benefits, both for the residents themselves in terms of all amenities being on their doorstep and also the city centre businesses that provide them.
“We have a lot of exciting developments going on in our city centre at the moment, this is the right development happening in the right time and place.”
Peter Hiller, a member of the board of the Peterborough Improvement Partnership, which oversaw the construction of the waterfront Fletton Quays development, said: “This is an exciting day for the city and the beginning of a new era for Northminster.
“When finished, residents will be able to look out from beautiful apartments and see the spires of Peterborough City Cathedral on their doorstep.
“They’ll be a short walk from our train station, with great links to the north and south, and an even shorter walk to the excellent bars, shops and restaurants in the city centre.
“At Fletton Quays we have already seen what fresh, exciting development can do to revitalise our city.
“We look forward to watching this development deliver on its vision for city centre living.”
David McCallion, director of developer Willmott Dixon, said: “We are proud to be delivering this fantastic 10-storey flagship Northminster development in collaboration with PIP and Peterborough City Council, providing affordable housing stock and valuable commercial spaces to further attract investment into the area.
“The project will benefit from the use of innovative modern methods of construction, with 63 per cent of the project being pre-manufactured value.
“Offsite elements include a lightweight gauge steel frame, brick slips and the use of bathroom pods, which will help to ensure quality, programme certainty and come with environmental benefits.
“This is such an important regeneration project for Northminster and we are looking forward to working alongside our delivery partners to revitalise the area for residents and the wider community.”