CLS Holdings plc Renews Colt Technology Services at Malakoff's Pierre Valette in €1.7 Million-a-Year Lease

CLS Holdings plc has signed a new firm nine-year lease with existing occupier Colt Technology Services for 10,778 square meters (116,013 square feet) of office and light industrial space at 23-27 Rue Pierre Valette in Malakoff, southwest Paris, the company announced Nov. 5. The lease secures rental income above €1.7 million per year and begins Jan. 1, 2027.

Colt Technology Services Lease Terms at Pierre Valette

The agreement with Colt Technology Services, which has been an occupier of the property for more than 25 years, also covers 120 parking spaces. The letting was signed at 2.7% above passing rent and in line with estimated rental value (ERV). The lease is subject to indexation under the Indice des Loyers des Activités Tertiaires (ILAT), France's tertiary-activities rent index.

Based on the stated area and annual rent of more than €1.7 million, the rent works out to roughly €158 per square meter, or about €14.66 per square foot, per year.

Property and Location in Malakoff, Southwest Paris

Pierre Valette, located at 23-27 Rue Pierre Valette, 92240 Malakoff, is a mixed-use property comprising light industrial space, including data and telecom uses, and offices. The building has direct access to Metro Line 13.

Connectivity will improve further when the Fort d'Issy-Vanves-Clamart-Malakoff station on the Grand Paris Express opens in April 2027 as part of Line 15, a few months after Colt's new lease commences.

CLS Comments on the Renewal

Philippe Alexis, Head of France at CLS, said: "We are delighted to renew our relationship with Colt Telecom, a trusted, long-standing occupier at Pierre Valette. This agreement reflects both the strength of our partnership and the continued appeal of this strategic location. The area is undergoing significant infrastructure enhancements, and we look forward to working closely with Colt to support their evolving space needs."

Market Context: Paris Office Conditions and CLS's France Portfolio

The renewal comes as Greater Paris office take-up totaled 750,000 square meters in the first half of 2026, broadly flat year over year, while immediately available supply reached 6.5 million square meters and the vacancy rate rose to 11.8%. In that setting, a nine-year commitment from an established telecom occupier reduces reletting risk on specialized light industrial, data and network space.

At June 30, 2026, CLS's France portfolio was valued at £212.5 million across 15 properties, with 62,900 square meters of lettable space, 157 tenants and a 7.7% vacancy rate. France vacancy had improved from 12.1% at year-end 2025. Across the group, rent collection was approximately 98%.

In the first half of 2026, CLS completed £56.8 million of asset sales and secured £5.7 million of contracted rent through 57 lettings and renewals. Group vacancy stood at 14.5%, and net rental income fell 13.1% year over year to £46.3 million, partly because of disposals, lease expiries and tenant departures.

Outlook

The Pierre Valette lease preserves income from a long-standing tenant at a modest uplift to passing rent, with ILAT indexation providing a mechanism for future rental adjustments. The Line 15 station opening is scheduled shortly after the new term begins.