The University of California has upped its investment into Blackstone Real Estate Income Trust (BREIT) by $500M, on top of the $4B investment it made earlier in January, despite union protests that the deal will worsen the affordable housing shortage for UC students and employees. 

The complaint from unions representing over 100,000 workers in the University of California system, fear the investment strategy will only further deepen a hostile housing market, and demands that UC divest its holdings in Blackstone. 

Meanwhile, despite the additional investment from The University of California, BREIT is dealing with significant investor withdrawals from the $69 billion fund. Fourth quarter results showed a 42% drop in earnings and Blackstone limited December withdrawals to $0.3% of the fund’s net assets. 

UC’s new $500M investment will mirror the earlier package, with a six-year minimum hold, the acquisition of BREIT Class I common shares and a contribution from BREIT to guarantee a minimum 11.25% annual return.