A Gateshead firm has won a £5.8m contract to deliver an innovative regeneration scheme using modular building techniques.

Acrol Modular hopes to create around 10 jobs in the scheme, which will see it work with Cheltenham Borough Council, Workshop and a group of local entrepreneurs in the Gloucestershire town on the Minster Exchange scheme, which aims to create units for the cyber, digital and creative sectors.

The project is partly funded by a £3.5m grant from the Government’s Getting Building Fund, as well as finance from the GFirst LEP, Gloucestershire’s local enterprise partnership. The funding will enable delivery of an innovative modular construction building which will house workspace for the cyber tech, digital and creative sectors, a Growth Hub to support business development, an event space and a café.

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The project also aims to improve the open space surrounding the Cheltenham Minster, plus the Wilson art gallery and museum.

Acrol’s sales director Wayne Le Montais said: “This is great for Acrol Modular. Three years ago the company had a management restructure, since then the business has had steady growth in line with our business plan. During this period, we have quadrupled turnover, increased profit, doubled our work force, giving confidence for our owners Tom Wood and Mike Kears to make big investments back into the business.

“This order gives us a great foundation to build the business further. I have to say a big thank you to the Acrol team back at the factory and in the office, who have given up their evenings and weekends to hit deadlines over the last couple of years. This truly endorses the fact that we have a great team behind us, all working hard for the same goals.”

The Minster Exchange will provide a new home for Cheltenham Festivals to deliver a programme of events throughout the year and a platform to support its education and outreach initiatives.

As well as building the modular units, Acrol will install air conditioning, ventilation, water, drainage as well as electrical systems through sister company Acrol Air Conditioning Limited. All of the support elements of the build will be integrated into the building either at Acrol’s Gateshead factory or on site.

Acrol co-director William Johnson said: “We were delighted to be selected for this project and look forward in partnering with Workshop and Cheltenham Borough Council. Working on this project is important to us not only with the presence it gives us in the marketplace, but also in improving our partnering skills with companies of this stature.

“We are confident this will assist us to secure future projects of similar prestige and will help us continue to develop over the forthcoming years. The next few years is certainly going to be an important & exciting period for myself, Wayne and Acrol Modular Buildings.”