CLS Holdings plc (CLI), the London-headquartered commercial property group, has announced a new nine-year lease at its 23-27 Rue Pierre Valette property in Malakoff, southwest Paris, with existing occupier Colt Technology Services. The lease covers 10,778 sqm of office and light industrial space plus 120 parking spaces, commencing 1 January 2027. The agreement secures annual rental income above €1.7 million, signed at 2.7% above passing rent and in line with estimated rental value, offering investors a concrete indicator of occupier demand at this mixed-use asset.

Key Points

  • CLS Holdings plc (CLI), a UK-listed commercial property investment and management company
  • New firm nine-year lease signed with Colt Technology Services at Pierre Valette, Malakoff, Paris, commencing 1 January 2027
  • Lease covers 10,778 sqm (116,013 sq ft) with 120 parking spaces; annual rent secured above €1.7 million, 2.7% above passing rent
  • Investors may watch for further leasing activity across CLS's European portfolio and progress on the nearby Grand Paris Express Line 15 station opening

Colt Technology Services Renews at Pierre Valette After More Than 25 Years as CLS Occupier

Colt Technology Services has been an occupier at the Pierre Valette site for over 25 years, making this renewal a significant retention for CLS Holdings. The new lease runs for nine firm years from 1 January 2027, providing the company with long-term income visibility at the asset. Philippe Alexis, Head of France at CLS, described Colt as a "trusted, long-standing occupier" and noted the agreement reflects the strength of their partnership. The lease is subject to Indice des Loyers des Activités Tertiaires (ILAT) indexation, linking rental income to a French commercial activity index over the lease term.

Pierre Valette Rental Terms: €1.7m Annual Income Secured at 2.7% Above Passing Rent

The letting secures annual rental income above €1.7 million, agreed at 2.7% above the previous passing rent and in line with estimated rental value at the property. The 10,778 sqm space encompasses office accommodation alongside light industrial uses, including data and telecom facilities suited to Colt's operational requirements. The 120 parking spaces included in the agreement add further practical value to the letting. CLS did not disclose the total contract value over the nine-year term in the announcement, but the annual rental rate provides a clear baseline for income expectations at this Paris asset.

Grand Paris Express Line 15 Set to Enhance Connectivity at Malakoff Location from April 2027

The Pierre Valette property already benefits from direct access to Paris Metro Line 13, and its connectivity profile is set to improve further when the Grand Paris Express station Fort d'Issy-Vanves-Clamart-Malakoff opens as part of Line 15 in April 2027. This infrastructure development coincides closely with the commencement of the new Colt lease, potentially supporting occupier demand and asset values in the southwestern Paris submarket. Philippe Alexis noted the area is "undergoing significant infrastructure enhancements," a sector-specific driver that investors in European office property may consider when assessing CLS's French portfolio exposure.