Oliver Judges, Director of Property, approved the award of a lease agreement for Unit 2 Gerry Raffles Square, Stratford, to Diesel Gym CIC. This decision aims to bring a long-term vacant property back into active use, supporting community initiatives and the council's asset management objectives.

Unit 2 Gerry Raffles Square, Stratford - Award of Lease Agreement

The Director of Property, Oliver Judges, approved the granting of a new 10-year commercial lease for Unit 2 Gerry Raffles Square, Stratford¹, to Diesel Gym CIC. This decision follows an Expressions of Interest exercise conducted in October 2024, which sought organisations capable of delivering both a sustainable commercial operation and wider community and social value benefits.

The property, located near the Theatre Royal Stratford East, Stratford Picturehouse, and Stratford Youth Zone, has been substantially underutilised for over six years, having previously operated as a café. The council's proactive steps to bring the property back into use are intended to reduce void holding costs, enhance activation within the area, and minimise risks associated with prolonged vacancy. A temporary occupier is currently utilising the space to mitigate security and vacancy-related risks.

Diesel Gym CIC, a Newham-based community martial arts organisation, was identified as the preferred occupier due to its strong operational model, social value offer, community engagement, and financial proposal. The proposed use of the property as a martial arts and community fitness facility is expected to increase footfall and activity in the Stratford area, aligning with the council's priorities for health, wellbeing, and community participation.

The lease terms include an effective full repairing and insuring basis, with the tenant responsible for business rates, utilities, and service charge contributions. The lease is contracted outside the security of tenure provisions of the Landlord and Tenant Act 1954. The council is satisfied that the proposed transaction represents the best consideration reasonably obtainable while supporting wider corporate and regeneration objectives, including those outlined in the Building a Fairer Newham Corporate Plan (2022–2026). Specifically, the proposal contributes to A Healthier Newham and Ageing Well by supporting accessible health and fitness activities, Newham's Inclusive Economy by fostering local employment and economic activity, and Your Neighbourhood by increasing activation and vitality in a prominent town centre location.

Alternative options considered and rejected included not proceeding with the letting, which would have resulted in continued void costs and risks, and seeking an alternative occupier, which was deemed unnecessary as Diesel Gym CIC was identified as the preferred tenant. Disposal of the asset was also considered but rejected based on recommendations from the council's strategic property consultants, JLL, who advised retention due to the property's strategic location and potential for income generation and town centre activation.

The decision was published on the Council's Forward Plan on 4 April 2025. The financial implications include the provision of regular commercial property income to the council, with an initial 12-month rent-free period for the tenant. The lease places repairing responsibilities on the tenant, alongside other occupational costs. Legally, the granting of the lease is in accordance with the council's general power of competence under the Localism Act 2011 and Section 123 of the Local Government Act 1972. The council has also considered its duties under section 149 of the Equality Act 2010 and does not anticipate significant adverse equalities impacts.