The independent property arm of BNP Paribas is to raise a £150m fund to spend on UK property.

The fund will target a broad range of properties across office, retail and industrial, providing a new example of increasing appetite among investors to take advantage of a 45% decline in asset values.

UK commercial property suffered a torrid 24 months following the onset of the credit crisis in summer 2007 but values have stabilised in the last two months as overseas buyers and cash-rich UK entrepreneurs, such as Nick Leslau, make acquisitions. Britain’s largest property companies, such as British Land, are also scouring the market for opportunities after raising roughly £5bn in equity to restructure their beleaguered balance sheets.

According to Cushman & Wakefield, the value of deals in Central London rose 12% to £1.6bn in the third quarter compared to the second quarter, marking the first time since June 2007 that there has been two consecutive quarters of growth. The £1.6bn is also 29pc up on the same three months last year.