March 27 (Bloomberg) -- Australian real estate funds more than tripled their investment in Europe last year as they switched the focus of their international investments away from the U.S.

The funds spent $6.3 billion buying commercial property in Europe in 2006, lead by Germany and the U.K., as spending in the U.S. tumbled by 67 percent to $2.7 billion, realtors Jones Lang LaSalle Inc. said in an e-mailed statement today.

``Going forward, Australian interest in global assets will gather even more momentum,'' Tony Horrell, the London-based chief executive of capital markets at Jones Lang LaSalle, said in the statement. ``As a result we expect Australian fund investment volumes outside of Australia to be higher again this year.''

Europe overtook the U.S. as the favored area for commercial real estate investment last year for the first time in at least four years as global spending surged 38 percent to a record $862 billion, according to Chicago-based Jones Lang.

Australian funds spent $3.5 billion in Germany last year, almost five times the $700 million they spent in 2005. Investment in the U.K. rose a similar amount to $1.5 billion from $300 million, said Jones Lang. Investment in the Asia-Pacific region rose 10 percent to $3 billion.

To contact the reporter on this story: Peter Woodifield in Edinburgh at pwoodifield@bloomberg.net.

Last Updated: March 27, 2007 12:43 EDT