Statement re Property Fund

Schroders PLC
31 August 2000


                        Schroders plc ('Schroders') 
 
                Schroder European Property Advisers Limited
 
Schroders owns 75.1 per cent of Schroder European Property Advisers Limited
('SEPAL'). The balance is owned by Schroder European Property Fund NV
('SEPF'), a property fund based in the Netherlands which is managed by SEPAL
under an agreement which terminates in 2004; it was acquired by SEPF earlier
this year. 
 
In response to SEPF's stated wish to control its management and in line with
current market trends, Schroders has agreed the transfer of the management of
the fund to SEPF for a total consideration of DFl 29 million (£8.1 million).  
 
The net assets and profits after tax of SEPAL attributable to Schroders in
1999 were not material. 
 
Schroders intends to develop its continental European property management
business on the back of its highly successful, wholly-owned UK business which
has assets under management of over £1.5 billion.  
 
William Hill, managing director of Schroder Property Investment Management,
commented: 
 
'Continental Europe is an important growth opportunity for us. This agreement
enables us to move forward on an integrated basis across the whole of Europe
to the benefit of our existing UK business and our prospective continental
business.' 
 

For further information, please contact:


Schroders
William Hill                                    020 7658 6726 

GCI Financial
Rupert Ashe/Christopher Joll                    020 7398 0800