* LGIM's 2.3 bln stg fund cuts value by further 10 pct
* F&C's fund cuts value by 5 pct
* CCLA cuts institutional fund value by 4.5 pct
* Aberdeen extends 24-hour fund suspension to next week
* Follows six funds suspending trading altogether (Updates with extension of Aberdeen suspension, CCLA cut)
By Carolyn Cohn and Simon Jessop
LONDON, July 7 (Reuters) - Three fund managers said onThursday they had cut the value of their UK property funds and afourth extended a 24-hour trading suspension, as the industryseeks to stem a tide of redemption requests since Britain's voteto leave the European Union.
A slump in the value of the pound and volatile stock marketssince the referendum last month have unnerved investors who areworried that the uncertainty will slow down business investmentin Britain and hit demand to rent and buy commercial property.
More than 18 billion pounds of retail investor cash has beenfrozen in the last week as funds run by M&G Investments,Standard Life Investments and Threadneedle Investments, amongothers, suspended trading to allow time to sell some of thebuildings, a process which can take many months.
The move to cut the value of a fund is a less extreme methodof controlling redemptions, as it effectively forces thoselooking to leave to accept a lower price than was establishedthe last time the property portfolio was valued.
Two UK property funds aimed at retail investors, managed byLegal & General Investment Management and F&C, said they made acut in the value of their funds, by 10 percent and five percentrespectively.
Retail funds, including all seven which this week havesuspended trading, normally allow investors to take out theircash daily.
Several firms which operate funds aimed at institutionalinvestors told Reuters they had made no changes, and had seenlittle redemption demand from investors. These funds typicallyonly allow redemptions on a monthly or quarterly basis.
However, institutional investment manager CCLA, whichinvests money for a range of charities, religious groups and thepublic sector, also said it had cut the value of its funds sincethe Brexit vote, by 4.5 percent.
"We felt that the...adjustment was an appropriate andproportionate response to the heightened risk of uncertainty,but not more than that," CCLA's chief investment officer JamesBevan told Reuters.
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This follows a decision by BlackRock, the world's largestasset manager, to increase the redemption charges on its 3.3billion sterling UK Property Fund, also aimed at institutionalinvestors, at its end-June redemption period.
Legal & General Investment Management, the fund arm ofinsurer Legal & General, said it had cut the value ofits 2.3 billion pounds ($2.99 billion) UK Property Fund by afurther 10 percent, after a previous 5 percent valuation cut.
F&C, part of the fund arm of Bank of Montreal, saidit had cut the value of its 305 million pound UK Property Fundby 5 percent as part of a move to fair value pricing.
Aberdeen Asset Management, which on Wednesday suspendedtrading in its 3.2 billion pound UK property fund for 24 hoursand cut the value by 17 percent, on Thursday extended thesuspension until next Monday.
"Investors who placed trades yesterday have asked for moretime to consider whether to withdraw their redemptions,"Aberdeen chief executive Martin Gilbert said in a statement.
However, listed real estate funds rose on Wednesday afterrecent sharp falls.
At 1336 GMT, Standard Life's listed real estate fund was up 2.93 percent, while F&C Commercial Property Trust rose 4.3 percent and the Schroder Real EstateInvestment Trust climbed 5.7 percent.
Long-term players said they may look to snap up bargains.
"There may...be opportunities to add to property exposure atlower prices over the next few quarters, once we have clarity onthe effectiveness of easier domestic policy and some kind ofpolitical resolution to the current impasse over the UK'srelationship with Europe," said Trevor Greetham, head ofmulti-asset at Royal London Asset Management. ($1 = 0.7704 pounds) (Additional reporting by Sujata Rao; editing by Anna Willard)
Legal & General (LGEN)
