This is what reveals the annual financial statement of the Caudan Development Limited, a public company providing management, promotion and development of the Caudan Waterfront. However, through its various activities, the group is still profitable with profits of the order of Rs 43.7 million.
In his note to shareholders, Jean-Pierre Montocchio, Chairman of the Caudan Development Limited, said that the dip in rental income is due to the difficult economic situation has a negative effect on consumer confidence and subsequently on shops.
'' This together with continuing structural changes has impacted on retailer demand, caused a number of major retailers failures and resulted in falling rental values'', wrote the Chairman of the Caudan Development Ltd.. It also concedes that the deadly floods of March 30 have further complicated the already precarious situation.
Thus, the rental fees collected for the 2013 financial year amounted to Rs 232.4 million and were previously Rs 246.9 million. The shortfall of commercial locations and empty office spaces is of the order of Rs 51 million.
To remedy this situation, the direction of Caudan Development Ltd. said work closely with existing landlords to enable them not only to cope with the challenges of the moment but also to try to identify opportunities for them to achieve better performance.
The direction of Caudan Development Ltd says also work to make it more attractive and Caudan Waterfront account soon to refurbish the 'foodcourt' and cinemas. " We are pursuing our valuable development pipeline which will provide a basis for future additional future growth,'' says Jean-Pierre Montocchio. And also note that the Group will continue to invest in the development of modern office spaces displaying thus his optimism.
For the year 2014, the Caudan Development Limited provides that the downward trend in rental income will continue, always due to economic uncertainties. But unlike rental activities, those in the field of security work very well with profits of Rs 6.9 million, or more than 60% compared to the previous period. Le Caudan Security Services hopes to soon offer its services to commercial banks.