While a recession affected developed economies globally, market participants in Mauritius over-zealously built new shopping complexes and offices resulting in an over-supply of available retail and office rental space. Benchmarking themselves on their prior success, shop owners opened additional outlets in these new shopping complexes. Unfortunately, the ‘demand pie’ had not gotten bigger; there were simply more people sharing in it. These market disruptions would lead to a decrease of rental rates across the industry as the market sought a new price-equilibrium level. This resulted in a period of depressed growth for Caudan Development. In times of uncertainty, one recalls the property investing mantra of ‘location, location, location’, and for this reason short term market turbulences did not sway PAD’s investment focus.
In 2011, MFD secured the financing and began construction on its fourth and final phase – the final step was in sight. By the end of construction, MFD would be the largest logistics centre in the region with 60,000 m2 of dry warehouses, 14,000 m2 of cold warehouses, 15,000 m2 of industrial zones, 6,000 m2 of offices and 25,000 m2 of container park all situated next to the Mauritius container terminal.