
5.	INVESTMENTS IN REAL ESTATE VENTURES

As of December 31, 2018 and 2017, we had Investments in real estate ventures of $356.9 million and $376.2 million, respectively.

Approximately 75% of our investments, as of December 31, 2018, are in 45 separate property or commingled funds, where we co-invest alongside our clients and for which we also have an advisory agreement. The remaining 25% of our Investments in real estate ventures, as of December 31, 2018, were attributable to investment vehicles that use our capital and outside capital generally provided by institutional investors to invest, primarily, 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 $240.6 million as of December 31, 2018, of which $60.4 million relates to our commitment to LIC II.

Our investments in real estate ventures include investments in entities classified as VIEs, which we analyze for potential consolidation. We had equity method investments, either directly or indirectly, of $37.0 million and $7.8 million as of December 31, 2018 and 2017, respectively, in entities classified as VIEs. 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.



	December 31,
($ in millions)	2018		2017
Property and equipment, net	$	48.5	15.7
Investments in real estate ventures	14.0		12.6
Other assets ⁽¹⁾	4.4		44.4
Total assets	$	66.9	72.7
Other current liabilities ⁽¹⁾	$	0.9	30.9
Mortgage indebtedness (included in Other liabilities)	28.2		9.2
Total liabilities	29.1		40.1
Members' equity (included in Noncontrolling interest)	37.8		32.6
Total liabilities and members' equity	$	66.9	72.7

(1) Balances as of December 31, 2017 primarily represented investment properties and their corresponding liabilities, classified as held-for-sale.



	Year Ended December 31,
($ in millions)	2018			2017		2016
Revenue	$	5.8		5.9		6.6
Operating and other expenses	(5.1		)	(4.2	)	(7.1	)
Gain on sale of investment	2.0			—		13.3
Net income	$	2.7		1.7		12.8

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

The following tables summarize the combined financial information for our unconsolidated real estate ventures (including those held via LIC II) accounted for under equity method or at fair value.



				December 31,
($ in millions)				2018		2017
Balance Sheets:
	Investments in real estate, net of depreciation			$	13,217.7	17,407.4
	Total assets			15,561.2		19,589.7
	Mortgage indebtedness			4,968.0		6,170.5
	Other borrowings			561.7		926.3
	Total liabilities			6,155.8		8,301.1
	Total equity			9,405.4		11,288.6

		Year Ended December 31,
($ in millions)		2018		2017		2016
Statements of Operations:
	Revenue	$	1,199.5	1,319.0		1,266.8
	Net income	1,046.3		895.7		874.7

Impairment

There were no significant impairment charges on properties held by our investments which were other-than-temporarily impaired during the each of the years in the three-year period ended December 31, 2018.

Fair Value

Based upon elections made at the date of investment, 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 the 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.



	Year Ended December 31,
($ in millions)	2018			2017		2016
Fair value investments as of January 1,	$	242.3		212.7		155.2
Investments	55.2			33.5		105.8
Distributions	(63.8		)	(37.1	)	(62.1	)
Change in fair value	13.9			28.1		16.6
Foreign currency translation adjustments, net	(0.3		)	5.1		(2.8	)
Fair value investments as of December 31,	$	247.3		242.3		212.7

See Note 9, Fair Value Measurements, for additional discussion of our investments in real estate ventures reported at fair value.