By Sinead Cruise

LONDON (Reuters) - Land Securities is preparing for a homecoming to the battered UK commercial property investment market, fuelling hopes a two-year correction in prices is now in its twilight.

After months in the investment wilderness, the UK's largest property investment trust, said on Wednesday it was preparing to join a growing legion of opportunistic buyers keen to exploit a sharp 45 percent fall in values since June 2007.

"With a strengthened balance sheet we are now assessing opportunities for new investment," Chief Executive Francis Salway said.

"We maintain our view that patience is a virtue and that opportunities will arise over years not just months, particularly in terms of disposals by banks," he said.

Salway said the firm was honing in on income-producing buys in the retail sector, but was also weighing acquisitions in Greater London, where it could add value to real estate via redevelopment.

The plans could see the firm expand activities in non-core property segments such as housing, student homes and leisure.

Land Securities (LAND.L: Quote, Profile, Research) said the rising investor interest supported its assumption of a 45-50 percent total peak-to-trough fall in commercial real estate prices when it priced its 756 million pounds rights issue in February

Benchmark provider Investment Property Databank said on Tuesday the monthly slump in pricing had slowed to 0.9 percent in June, against 1.6 percent in May.