LONDON- Fund managers said on Wednesday they would not rush to unfreeze suspended commercial property funds after British surveyors said they no longer saw any "material uncertainty" in real estate valuations, which was a major barrier to re-opening.

Real estate funds aimed at retail investors totalling more than $8 billion were suspended in March after surveyors said it was not possible to be sure about valuations due to the pandemic. Institutional funds in the 70 billion pound ($90.56 billion) UK property fund sector quickly followed suit. 

Rules governing property funds meant they should consider suspending in circumstances where surveyors issued such a warning, the Association of Real Estate Funds reminded its members in March.

On Wednesday the Royal Institution of Chartered Surveyors said its forum on the issue "recommends a general lifting of material valuation uncertainty", pointing to the easing of many restrictions imposed on households and businesses as a result of the coronavirus pandemic.

Surveyors should continue to assign the material uncertainty tag to "some leisure and hospitality assets" on a case-by-case basis, it said in a statement.

But analysts said any reopenings of the funds could risk a flood of investors scrambling for the exits, particularly due to ongoing worries about the pandemic and a no-deal Brexit.

A spokesman for Aegon Asset Management said its fund would not reopen at least until after its next valuation date at end-September, and the firm would also consider liquidity levels and property transaction volumes before making a decision.

Aberdeen Standard Investments also did not expect its funds to reopen before Sept 30 "at a minimum", it said in an emailed statement, adding that it needed to look at cash levels, the real estate market and expected investor flows.

Janus Henderson and M&G said their funds remained suspended and they would update investors in four weeks at the latest.

Aviva and Columbia Threadneedle said they were monitoring the situation.

Regulators are unhappy about funds such as the retail property funds, which invest in illiquid assets but allow investors to take their money out every day. Many of the funds also suspended after Britain's vote to leave the European Union in 2016.

The Financial Conduct Authority last month proposed that investors in property funds should wait up to six months before they can get their money back, to avoid a stampede for the exit leading to widespread suspensions in rocky markets.

($1 = 0.7730 pounds)

(Reporting by Carolyn Cohn; Editing by Raissa Kasolowsky) ((carolyn.cohn@thomsonreuters.com; 44 207 542 6320; Reuters Messaging: carolyn.cohn.thomsonreuters.com@reuters.net))