On Munich’s Maximilianstrasse stands Moshammer-Haus, a building dating from 1867 that provides 60,700 square feet (5,640 square metres) of mixed-use space, with luxury brands Hublot, Fendi and Montblanc occupying its ground-floor retail units. A designated city monument, it notched up another piece of history in April, when its sale highlighted the unfolding distress in Germany and other European real estate markets from higher interest rates.

Centrum, a Düsseldorf-based developer and property owner, sold the property and another at the rear to Commerz Real, for a reported €250 million, in a disposals programme that has allowed it to emerge from administration. It originally filed for creditor protection in July 2023, citing construction materials inflation, higher borrowing costs and the freeze in Germany’s real estate investment market.

Distress is on the rise across Europe, as borrowers face refinancing loans secured by assets which have shed between 14 perce