Construction has begun on the first phase of the £1 billion Golden Valley development in Cheltenham after Henry Boot secured forward funding for the project's flagship innovation centre.

The milestone marks the start of a major regeneration programme that will place science, technology and national security facilities at the heart of a new mixed-use district combining commercial space, transport infrastructure and housing.

Henry Boot's development arm, HBD, has secured funding for the first £95 million phase of the scheme, which comprises the 160,000 sq ft IDEA innovation centre, the ROUTER transport hub and associated infrastructure.

Located alongside GCHQ, Golden Valley forms a central part of the UK's National Cyber Strategy and is intended to establish Cheltenham as a leading hub for cyber security, technology and innovation businesses.

The wider masterplan will deliver around one million sq ft of commercial accommodation alongside up to 443 new homes across a range of tenures, creating a new mixed-use neighbourhood centred on knowledge-intensive employment.

According to Henry Boot, IDEA is already 68% pre-let or under offer less than a year after planning permission was secured, with interest continuing in the remaining space ahead of completion, which is expected in early 2028.

The strong pre-letting performance is also expected to support the next stage of development, with HBD preparing to bring forward two further commercial buildings, INPUT and OUTPUT, providing a combined 188,000 sq ft of flexible workspace aimed at organisations operating within the national security ecosystem.

Alongside the commercial development, HBD has begun marketing the residential element of the scheme, which has outline consent for up to 443 homes and is expected to be delivered by a specialist residential partner.

The project reflects a growing regeneration model in which employment-led development acts as the catalyst for wider placemaking. Rather than housing driving investment, Golden Valley places innovation, research and high-value employment at the centre of the masterplan, with residential development, transport infrastructure and public realm following to support long-term growth.

Ed Hutchinson, Chief Executive of Henry Boot, said securing forward funding represented a major milestone for both Golden Valley and the company, adding that strong occupier demand had created significant momentum as construction begins.

Cheltenham Borough Council Leader Rowena Hay said the project would deliver lasting economic benefits at local, regional and national level, while GCHQ's Director of Technology Futures, Dr Marsha Quallo-Wright, highlighted the role the development will play in strengthening collaboration between industry, academia and government.

Golden Valley is one of a growing number of UK regeneration schemes built around science and technology clusters rather than traditional commercial centres. By combining innovation space with housing, transport and supporting infrastructure, the development illustrates how specialist employment sectors are increasingly shaping the next generation of mixed-use communities.