LONDON (Reuters) - Overseas buyers dominated London's stock-starved office investment market in the third quarter, grabbing 82 percent of deals by value and capturing the largest quarterly share of the market on record, data showed.

Broker CB Richard Ellis said the weak pound and swift correction in London office values has drawn more international investors, with prices rallying thanks to strong bidding competition and a shortage of supply.

The top five London office investment deals in the third quarter of 2009 were all done by overseas buyers, CBRE said.

North American investors were the most active, accounting for 47 percent of total London office investment. This was principally influenced by Blackstone's (BX.N: Quote, Profile, Research) acquisition of a 50 percent stake in British Land's (BLND.L: Quote, Profile, Research) Broadgate Estate.

German investors were the second largest cross-border buyer in the quarter, spending more than 300 million pounds and accounting for 13 percent of the market.

Investment activity in the London office market rose sharply to 2.7 billion pounds during the quarter, taking the year-to-date turnover to 4.9 billion pounds, just below the 5.2 billion pounds recorded over the same period in 2008.

(Reporting by Sinead Cruise; Editing by Andrew Macdonald)

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