December 9, 1998 Security Capital Real Estate Mutual Funds Incorporated 11 South LaSalle Street Chicago, Illinois 60603 Re: Sponsorship Agreement for Security Capital European Real Estate Shares ("Fund")...

 
                                                                    Exhibit 5(e)


                                SECURITY CAPITAL
                        GLOBAL CAPITAL MANAGEMENT GROUP
                                  Incorporated

                                December 9, 1998



Security Capital Real Estate Mutual Funds Incorporated
00 Xxxxx XxXxxxx Xxxxxx
Xxxxxxx, Xxxxxxxx 00000


     Re:  Sponsorship Agreement for Security Capital European
          Real Estate Shares ("Fund")
          ---------------------------------------------------


Gentlemen:

     Pursuant to Section 2 of the above-referenced Sponsorship Agreement dated
June 30, 1998, Security Capital Global Capital Management Group Incorporated has
determined to continue its undertaking to waive the advisory fees and or
reimburse expenses to the extent necessary to maintain the total operating
expenses (excluding brokerage fees and commissions, interest, taxes and other
extraordinary expenses) of: (i) Class I shares of the Fund at 1.45% of the
average daily net assets of the Class I shares; and (ii) Class R shares of the
Fund at 1.60% of the average daily net assets of the Class R shares until
December 31, 1999.

                                   Sincerely,

                                   SECURITY CAPITAL GLOBAL CAPITAL 
                                   MANAGEMENT GROUP, INCORPORATED

                                   /s/ Xxxxxxx X. Xxxxx Xx.
                                   -------------------------------------
                                   Xxxxxxx X. Xxxxx, Xx., President