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BlackRock in Talks to Sell Shanghai Tower to Rava at 54% Loss

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BlackRock in Talks to Sell Shanghai Tower to Rava at 54% Loss

BlackRock is in advanced discussions to sell Trinity Place in Shanghai to Hillhouse Investment affiliate Rava Partners for approximately RMB 634 million, taking a 54 percent haircut on the property.

The prospective deal values the 31,697 square metre tower on Changshou Road at roughly RMB 20,000 per square metre, down from the RMB 1.37 billion the US manager invested in April 2017.

Trinity Place sits opposite Wuning Road station on metro lines 13 and 14 in Putuo district. Completed in 2006, the asset includes 26,832 square metres of office space across floors 5 through 27, anchored over a 4,865 square metre retail podium occupying the bottom three floors. The transaction remains under active due diligence.

Rava Partners plans to convert the commercial tower into rental apartments. Claire Tang, now a partner at Rava, oversaw a similar repositioning during her tenure at LaSalle Investment Management in 2022, acquiring a commercial asset in Hongqiao before turning it into multifamily living units.

Rents in the building currently run between RMB 3 and RMB 5.5 per square metre per day. In 2017, the same space commanded an average of RMB 6.9 per square metre per day. Occupancy inside the tower has dropped to around 60 percent, down from 86 percent at the time BlackRock bought it.

Institutional landlords in Shanghai face severe repricing as leasing demand remains concentrated in primary districts. 5 per square metre per day. That is nearly double the rental yield achievable at Trinity Place despite the property sitting right on the Jing An district perimeter.


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