The consortium, which also includes asset manager Equitix and student accommodation developer Campus Living Villages UK, was selected as the preferred bidder for the project in October but has now reached financial close on the deal.
Under the contract, the consortium will design, build, finance and operate two new college facilities on a 51-year concession at Mount Oswald. The project will be the first new Durham University college to be founded in the city since 2006.
Interserve will be responsible for designing and building the college facilities. It will include 1,000-bed spaces, a new University hub building with 300-seat banquet hall, and sports and music facilities.
Interserve said work will begin “shortly” with the scheme due to be completed in 2020.
"We are delighted to have reached financial close on this project and look forward to starting on site imminently," Interserve’s chief executive Debbie White said.
"This project builds on our extensive experience in the further education sector and our strong 15-year relationship with Durham University."