The London & Stanford property fund is readying itself to buy, backed by £200million from investors, it has been reported.
Established by Patrick Vaughan and Raymond Mould, the fund is believed to have one billion pounds of spending power.
"We think the market does not quite offer value yet," Mr Vaughan told the Telegraph. "However we believe it will get there."
He said he was looking for a 6.5 per cent yield, which would require an almost 20 per cent fall in capital values.
"The point of this deal is to set ourselves up to be ready when that happens," he commented.
Chief executive of property firm Brixton, Tim Wheeler, has added to speculation that London’s commercial property values still have further to fall.
Speaking in the company’s management statement, Mr Wheeler alluded to difficulty in raising finance, saying the worry of buying when prices are still coming down had put investors off.