(Bloomberg) — Unions representing 110,000 College of California employees demanded that the system divest holdings from Blackstone Inc., together with a current $4 billion funding with its huge actual property belief.
The teams are contending that the connection with the non-public fairness agency will worsen the housing scarcity for college kids and staff, in response to a letter dated Friday. The College of California’s funding workplace struck a deal earlier this month to inject $4 billion into Blackstone Actual Property Revenue Belief.
“The College of California’s present housing funding technique mixed with the bolstering of Blackstone’s BREIT will solely additional deepen a hostile housing marketplace for hundreds of thousands throughout California,” union leaders stated in a letter to Jagdeep Bachher, chief funding officer for the college system’s $152 billion pension and endowment funds.
1000’s of the college’s graduate college students and employees went on a monthlong strike final yr, demanding pay will increase due to the excessive price of dwelling in California, which has cities with among the nation’s costliest housing.
BREIT’s $4 billion take care of the College of California got here after its huge actual property belief for rich people confronted stress amid heightened withdrawal requests. Final yr, Blackstone funds paid $12.8 billion for student-housing landlord American Campus Communities.
A consultant for the College of California confirmed it has acquired the letter and was reviewing it. The consultant additionally reiterated earlier feedback by Bachher that the funding “is a chance that comes solely by way of sturdy, trusted partnership” and offers the college system with a well-diversified actual property portfolio.
Representatives of Blackstone didn’t instantly reply to a request for remark.
© 2023 Bloomberg L.P.