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UC Increases Blackstone BREIT Stake by $500M Despite Protests

UC Increases Blackstone BREIT Stake by $500M Despite Protests

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.


Inside The Story

The University of CaliforniaBlackstone BREIT

About Mark Nieto

Mark comes to ConnectCRE with an extensive background as a business and news reporter in San Francisco radio, as well as 35 years as a traffic reporter on several stations including KGO, KNBR, KCBS and KFRC. As a business reporter, Mark covered the tech world in Silicon Valley where he became familiar with real estate transactions in the hot Bay Area marketplace. He attended San Jose State University with a BA in Radio and TV Broadcasting and currently resides in the Lake Tahoe area where he gets to frequently enjoy all of his favorite activities: Golfing, Fishing, Hiking and Skiing.