The world's fifth biggest pension fund today moved to snap up hundreds of millions of pounds worth of trophy assets in London.

The National Pension Service of Korea (NPS) is eyeing buildings worth at least £150 million in the City and West End and expects to complete a number of deals before the end of the year.

It was another boost for the commercial property market in London which is increasingly being targeted by wealthy overseas investors eager to take advantage of the collapse in prices.

Sovereign wealth funds from China and Qatar last week ploughed millions of pounds into Canary Wharf through a major investment in Songbird Estates, which owns a large proportion of the Docklands development. The Evening Standard also understands there has been strong interest in the HSBC Tower in Canary Wharf.

The bank has returned the 42-storey skyscraper to the market having bought the building back off troubled Spanish property firm Metrovacesa for £800 million — £300 million more than it sold it for in 2007.

NPS appointed specialist asset manager Rockspring Property Investment Managers to beef up its exposure to UK property. It is evaluating a number of “prime landmark” assets in the City and West End which it wants to buy with or without debt.

NPS is planning to invest up to $3 billion (£1.8 million) in property in London, New York, Tokyo and Sydney this year.

Rockspring chief executive Robin Gilchrist said: “We are absolutely delighted to be working alongside NPS. We will be working hard to source exceptional opportunities in the central London office and retail market that will deliver the required returns for our investor.

“Given the level of equity available to the fund and its ability to be flexible on gearing for each transaction, we believe the fund will stand out as an attractive potential purchaser in a market that still has limited availability of debt.”