A major new £18m arts complex is set to open its doors to the public Belfast in 2011 after Northern Irish arts minister Nelson McCausland announced the start of construction work on the scheme.

The Metropolitan Arts Centre (MAC), which will form part of St Anne's Square in the city's Cathedral Quarter, will replace the existing Old Museum Arts Centre (OMAC) and provide a new space for theatre, dance and art. Facilities at the new complex will include two black box performance spaces with seating capacity for 120 and 350 spectators respectively, a 1,000sq m (10,764sq ft) art gallery, a box office, two rehearsal areas, two workshops and two white box exhibition spaces.

Resident company offices, a retail unit, full back and front-of-house facilities and a coffee shop will also be included as part of the MAC, which will be delivered and managed by OMAC trustees. The Department for Culture, Arts and Leisure (DCAL) has awarded £10.76m towards the cost of the development, while the Department of Social Development, the Arts Council of Northern Ireland, OMAC and Belfast City Council have also contributed funding.

McCausland said: "The construction, which has just commenced, will create jobs at a time of recession and once the building is complete the new MAC will further put us on the map as a location rich in cultural heritage and creative spirit. "The creative industries are a fundamental part of our cultural identity and contribute significantly to our economy and well-being. Northern Ireland is alive with talent and venues like this provide the appropriate stage for displaying this creativity. I want this venue to be highly accessible to local grassroots arts organisations."

Belfast-based architects Hacker Hall McKnight was selected to design the complex after a design competition held by OMAC and the Royal Institute of British Architects (RIBA).