New subsidiary formed to make first mortgages for investors.

Schroder Real Estate Associates and Gregory A. White announced the formation of Schroder Mortgage Associates. The new subsidiary of the investment advisory firm will make conservative first mortgages on high-quality commercial properties on behalf of institutional investors.

White is managing director of Schroder Mortgage Associates (SREA): as are M. Leanne Lachman, Norman L. Peck, and Mark Peskin.

Schroder Real Estate Associates is an integrated company that provides advisory, fiduciary investment and management services to pension funds and other institutional investors.

In forming this subsidiary, Schroder is acting on its conviction that commercial mortgage will appeal, to more and more fixed-income investors and that securitization of real estate will expand to meet the demands of the marketplace and particularly of institutional investors.

In today s market environment, commercial mortgages provide attractive returns to investors and, assuming conservative underwriting, have a low risk profile. As traditional providers of mortgage capital such as the insurance companies and banks have difficulty accommodating all the refinancings that will arise over the next few years, new mortgage funding will move into the breach.