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 UKβs decision to leave the European Union βmay increase demand for US real estate, as our market is deemed the safestβ.
It added: βGateway cities are likely to benefit.β
The London and south east England office markets will face tenancy issues, SWIB said.
The markets will, it predicts, βhave to work through a sorting out of space demand as Brexit is negotiatedβ.
βIn general, in-place long-lease terms favour landlords in uncertain times, and support operating cash flows,β the pension fund said, adding that it has very little exposure.
SWIBβs 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 βlargely discounted by nowβ, it said.
The pension fund also revealed it is providing $150m (β¬135m) in new capital for Blue Vista Capital Managementβs Student Housing Fund, a vehicle it already has an interest in.
SWIB told ΒιΆΉΣ³» Real Estate that βinvesting in senior housing now gives the investor the potential for uncorrelated alpha in its real estate portfolio.β
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.
