The US real estate market could benefit from the fallout of Brexit, according to the State of Wisconsin Investment Board (SWIB).

The pension fund stated in a board meeting document that the UK’s decision to leave the European Union “may increase demand for US real estate, as our market is deemed the safest”.

It added: “Gateway cities are likely to benefit.”

The London and south east England office markets will face tenancy issues, SWIB said.

The markets will, it predicts, “have to work through a sorting out of space demand as Brexit is negotiated”.

“In general, in-place long-lease terms favour landlords in uncertain times, and support operating cash flows,” the pension fund said, adding that it has very little exposure.

SWIB’s 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.

Widespread suspensions of trading in open-ended property funds in the UK is “largely discounted by now”, it said.

The pension fund also revealed it is providing $150m (€135m) in new capital for Blue Vista Capital Management’s Student Housing Fund, a vehicle it already has an interest in.

SWIB told IPE Real Estate that “investing in senior housing now gives the investor the potential for uncorrelated alpha in its real estate portfolio.”

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.