Construction work has started on the 233-bed student accommodation scheme adjoining Penryn railway station.
Redruth-based Bath Row Developments, who originally secured planning permission back 2009, has appointed Kier Living to be lead contractor.
The private sector development is being underwritten by University College Falmouth (UCF) and the University of Exeter (UoE), who share and jointly manage the Tremough Campus.
Bob Pepper of Bath Row Developments said: “The scheme will incorporate planted areas and green open spaces that will significantly enhance the visual impact of the site and utilise local materials, sub-contractors and suppliers as much as possible.
“All of the work on site is being carried out by Kier Living, who will be sourcing 85% of the labour and materials for the development from within the west country.”
The development is scheduled to be completed in time for the 2012/2013 academic year.