Barking and Dagenham Council's Cabinet has approved the extension of the lease for Orchard Medical Centre on Gascoigne Road, Barking, to 999 years. The decision, made at a meeting on Tuesday, January 20, 2026, will generate a capital receipt of £300,000 for the Council.

A map illustrating the spatial approach to community and social infrastructure in Dagenham Heathway, highlighting key areas like education, healthcare, and residential zones.
A map illustrating the spatial approach to community and social infrastructure in Dagenham Heathway, highlighting key areas like education, healthcare, and residential zones.

Crucially, the lease extension obligates the leaseholder, NSS Healthcare 1 Limited, to undertake a refurbishment of the medical centre. This refurbishment is intended to ensure the continued provision of healthcare facilities for local residents.

The report indicates that the property is currently in a poor state of repair with the external fabric of the building requiring a programme of maintenance works. As a condition of the transaction, the long leaseholder will be obligated to engage with the tenant, Barking Medical Practice, to facilitate a works programme to refurbish and repair the building fabric at their cost. A schedule of works has been identified and awaits approval from the occupier. While the report mentions NSS Healthcare 1 Limited is managed by Newcore Capital, a specialist property investor in social infrastructure real estate in the UK, their specific track record with similar refurbishment projects is not detailed.

The Orchard Medical Centre is currently operating under a long lease with 99 years remaining. The Council, as the freehold owner, considered three options: doing nothing, selling the freehold, or extending the lease.

The 'do nothing' option was rejected as it was considered very passive. Selling the freehold was also rejected because, although it would bring in slightly more income, marginally more income in the short term, it would in effect, allow the new owner, should they wish, the ability in future to potentially apply for change of use options, which would not necessarily serve the residents of our borough favourably.

Extending the lease was deemed the most beneficial option. It provides a capital receipt of £300,000, which will be added to the Council's reserves. The report highlights the benefit of the refurbishment of a much-needed medical facility, which will benefit a significant number of Barking residents, and particularly in the Gascoigne, or what was the Gascoigne estate. Furthermore, the lease extension ensures the guarantee of long-term health provision for the residents of Gascoigne and Barking, and will far outlast all of us colleagues.

While the refurbishment will ensure the continued provision of healthcare facilities for local residents and maintain its use as a purpose-built medical centre principally serving the Gascoigne area, specific healthcare services to be enhanced or introduced are not detailed. The use will remain restricted to a health care centre and ancillary uses thereto.

For more details on the Council's decisions, refer to the Decisions Tuesday 20-Jan-2026 19.00 Cabinet document.