
5.	INVESTMENTS IN REAL ESTATE VENTURES

As of September 30, 2017 and December 31, 2016, we had Investments in real estate ventures of $372.5 million and $355.4 million, respectively.

Approximately 70% of our investments are in 46 separate property or commingled funds, where we co-invest alongside our clients and for which we also have an advisory agreement. Our investment ownership percentages in these funds generally range from less than 1% to 10%. The remaining 30% of our Investments in real estate ventures, as of September 30, 2017, were attributable to investment vehicles that use our capital and outside capital primarily provided by institutional investors to invest in certain real estate ventures that own and operate real estate. Of our investments attributable to investment vehicles, the majority was invested in LaSalle Investment Company II ("LIC II"), in which we held an effective ownership interest of 48.78%.

We have maximum potential unfunded commitments to direct investments or investment vehicles of $222.2 million as of September 30, 2017, of which $65.4 million relates to our commitment to LIC II.

We evaluate our less-than-wholly-owned investments to determine whether the underlying entities are classified as variable interest entities ("VIEs"); we assess each identified VIE to determine whether we are the primary beneficiary. We have determined that we are the primary beneficiary of certain VIEs and accordingly, we have consolidated such entities. The assets of the consolidated VIEs are available only for the settlement of the obligations of the respective entities and the mortgage loans of the consolidated VIEs are non-recourse to JLL.

Summarized financial information for our consolidated VIEs is presented in the following tables.



(in millions)	September 30, 2017		December 31, 2016
Property and equipment, net	$	13.5	13.8
Investment in real estate ventures	9.1		10.3
Other current assets⁽¹⁾	40.0		40.7
Total assets	$	62.6	64.8
Other current liabilities ⁽¹⁾	$	31.2	35.0
Mortgage indebtedness (included in Other liabilities)	9.3		9.7
Total liabilities	40.5		44.7
Members' equity (included in Noncontrolling interest)	22.1		20.1
Total liabilities and members' equity	$	62.6	64.8

(1) Balances primarily represent investment properties and their corresponding liabilities, classified as held for sale.



	Three Months Ended September 30,					Nine Months Ended September 30,
(in millions)	2017			2016		2017			2016
Revenue	$	1.8		2.6		$	4.4		5.6
Operating and other expenses	(1.6		)	(3.7	)	(3.6		)	(5.7	)
Gain on sale of investment	—			—		—			13.3
Net income	$	0.2		(1.1	)	$	0.8		13.2

We allocate the members' equity and net income of the consolidated VIEs to the noncontrolling interest holders as Noncontrolling interest on our Condensed Consolidated Balance Sheets and as Net income attributable to noncontrolling interest in our Condensed Consolidated Statements of Comprehensive Income, respectively.

Impairment

There were no significant other-than-temporary impairment charges on Investments in real estate ventures for the three and nine months ended September 30, 2017 and 2016, respectively.

Fair Value

We report a majority of our investments in real estate ventures at fair value. For such investments, we increase or decrease our investment each reporting period by the change in the fair value and we report these fair value adjustments in our Condensed Consolidated Statements of Comprehensive Income within Equity earnings from real estate ventures. The table below shows the movement in our investments in real estate ventures reported at fair value.



(in millions)	2017			2016
Fair value investments as of January 1,	$	212.7		155.2
Investments	21.2			59.8
Distributions	(22.5		)	(32.6	)
Change in fair value	17.9			14.2
Foreign currency translation adjustments, net	4.9			7.4
Fair value investments as of September 30,	$	234.2		204.0