Commercial property in Europe braces for abrupt reversal

'Europe is going to go through the great unwind of 10 years of easy money,' said Skardon Baker, a partner at private equity firm Apollo Global Management.

Turmoil at trophy properties in London and Frankfurt offers a glimpse of the damage awaiting European commercial property investors as they face the sharpest reversal on record.

From a fraught refinancing process for an office building in the City of London to the strained sale of the Commerzbank Tower in Germany’s financial hub, investors are scrambling to find ways to bridge financing gaps as lending markets seize up from rapidly rising interest rates.