Real Estate
European Real Estate’s Decade-Long Party Is Coming to an End
- A €24 billion refinancing gap threatens to spur forced sales
- Landlords are holding firm for now but pressure is building
The 21 Moorfields office building, center, which will house Deutsche Bank AG’s new London headquarters in the City of London on Oct. 3.
Photographer: Carlos Jasso/BloombergThis article is for subscribers only.
Deutsche Bank AG’s gleaming new London headquarters was a sought-after asset in February, attracting bids of close to £1 billion ($1.1 billion), but then came Russia’s war in Ukraine.
The invasion caused energy and food prices to skyrocket, prompting central banks to unleash their most aggressive round of monetary tightening this century and threatening the foundations of Europe’s decade-long real estate boom. With a funding gap looming, landlords could turn into distressed sellers.