The Director of Property, Oliver Judges, approved the grant of a new 10-year lease 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 engagement and the Council's asset management objectives.

Unit 2 Gerry Raffles Square, Stratford - Lease Agreement with Diesel Gym CIC

The Director of Property, Oliver Judges, has approved the grant of a new 10-year commercial lease for Unit 2 Gerry Raffles Square, Stratford to Diesel Gym CIC. This decision is intended to bring a property that has been underutilised for over six years back into active occupation. The move aligns with the Council's asset management strategy to reduce void risks, increase footfall in the Stratford area, and improve the performance of its commercial property portfolio.

Diesel Gym CIC is a Newham-based community martial arts organisation. The proposed use of the property as a martial arts and community fitness facility is expected to enhance activity and visitor numbers in the area, contributing to wider health, wellbeing, and community participation goals. This initiative supports the Council's Building a Fairer Newham Corporate Plan (2022–2026) by promoting a healthier Newham, supporting the inclusive economy, increasing neighbourhood vitality, and providing opportunities for young people.

The lease will be on a full repairing and insuring basis, with the tenant responsible for business rates, utilities, and service charges. The terms of the lease were assessed to represent the best consideration reasonably obtainable while also supporting the Council's wider corporate and regeneration objectives. The decision to grant the lease was made after an Expressions of Interest exercise in October 2024, which targeted organisations capable of delivering both a sustainable commercial operation and significant community and social value benefits. Diesel Gym CIC was identified as the preferred occupier due to the strength of its proposed operational model, social value offer, community engagement, and financial proposal.

Alternative options considered and rejected included not proceeding with the letting, which would have resulted in continued void-related holding costs and risks associated with prolonged vacancy. Seeking an alternative occupier was also rejected as Diesel Gym CIC was deemed the preferred tenant. Disposal of the asset was considered but rejected based on recommendations from external 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 lease agreement is not afforded security of tenure under the Landlord and Tenant Act 1954. The Council's decision is underpinned by its general power of competence under Section 1 of the Localism Act 2011 and Section 123 of the Local Government Act 1972, which allows for the disposal of land for the best consideration reasonably obtainable. The Council has also considered its duties under section 149 of the Equality Act 2010 and does not anticipate any significant adverse equalities impacts.

The full details of the lease terms and Diesel Gym CIC's community and social value offer are contained within exempt appendices to the report. The decision was made by Oliver Judges, Director of Property, on 8 June 2026.