The value of Australian investment in European commercial property surpassed the inflows into American real estate for the first time in 2006, new data from global advisor DTZ indicates. Europe accounted for 46% of the AU$12 bn invested in real estate outside Australia last year. America's share was slightly less, a total reversal from the peak in 2003 when almost 90% was in the US.

The value of Australian investment in European commercial property surpassed the inflows into American real estate for the first time in 2006, new data from global advisor DTZ indicates. Europe accounted for 46% of the AU$12 bn invested in real estate outside Australia last year. America's share was slightly less, a total reversal from the peak in 2003 when almost 90% was in the US.

Australian property investment into Europe last year was more sporadic than into the US, although the transactions tended to be larger. Three major deals dominated Australian flows into Europe - Babcock & Brown's purchase of a German retail warehouse portfolio, Macquarie Goodman's purchase of 11 business parks in the UK and QIC Real Estate's purchase of UK retail properties. 'Australian property funds have tended to focus on European deals in excess of EUR 100 mln. In 2006 Australian investors were initially active in Germany, but quickly widened their focus to include Poland, where they appear to perceive the greatest value and potential in the office, logistics, and residential sectors in Warsaw, and the other major Polish cities', said Chris Conner, investment director of DTZ Poland.

Asia Pacific is also starting to figure more prominently on the radar for Australian investors, the DTZ report said.