There's nothing wrong with it per se, it's just in my view the money could be better spent. If a university needs a new building it will get built regardless. In contrast, I know graduate students living off ramen and suffering because their stipends are so small. Here the work of Simons Foundation on funding grad students is of great help because it means the students don't have to focus on getting money on top of their research but just focus on their research, which should lead to better results.