The US real estate market could benefit from the fallout of , according to the State of Wisconsin Investment Board (SWIB).
The pension fund stated in a board meeting document that the UK鈥檚 decision to leave the European Union 鈥渕ay increase demand for US real estate, as our market is deemed the safest鈥�.
It added: 鈥淕ateway cities are likely to benefit.鈥�
The London and south east England office markets will face tenancy issues, SWIB said.
The markets will, it predicts, 鈥渉ave to work through a sorting out of space demand as Brexit is negotiated鈥�.
鈥淚n general, in-place long-lease terms favour landlords in uncertain times, and support operating cash flows,鈥� the pension fund said, adding that it has very little exposure.
SWIB鈥檚 exposure comes via internationally diversified funds and its real estate portfolio is heavily weighted towards its domestic market.
The pension fund said it is too soon to tell if it will look at investment opportunities in the region affected by Brexit.
of trading in open-ended property funds in the UK is 鈥渓argely discounted by now鈥�, it said.
The pension fund also revealed it is providing $150m (鈧�135m) in new capital for Blue Vista Capital Management鈥檚 Student Housing Fund, a vehicle it already has an interest in.
SWIB told IPE Real Estate that 鈥渋nvesting in senior housing now gives the investor the potential for uncorrelated alpha in its real estate portfolio.鈥�
According to SWIB, the Blue Vista fund will look to make value-add investments in US student housing projects, investing in existing assets and new developments at major universities.
Blue Vista did not comment.
SWIB has made investments in student housing in the past through both funds and separate accounts.
