* PIA tells Treasury it has "serious concerns" over EU rules
* AREF says directive politically charged
(Writes through, adds detail)
By Laurence Fletcher LONDON, July 15 (Reuters) - Two UK property industry bodies have joined the list of critics of the European Union's controversial draft law on alternative investment funds.
In letters to the UK Treasury and the Financial Services Authority earlier this month, seen by Reuters, the Property Industry Alliance (PIA) said it had "identified a number of serious concerns" about April's directive on Alternative Investment Fund Managers.
The EU's draft law demands greater disclosure and more supervision of so-called alternative funds -- a broad term that also includes real estate and infrastructure, as well as hedge funds and private equity portfolios.
The group called for further detailed discussion on the directive's impact and said if the European Commission (EC) needs to bring in rules on hedge funds and private equity quickly, then property funds should be covered by a separate directive, introduced in a more considered way.
It also said if the EC has concerns about leverage, these should be tackled at the point of lender, rather than by rules governing individual borrowers.
Meanwhile, the Association of Real Estate Funds (AREF), in a letter to the Treasury also seen by Reuters, said the directive was politically charged and said European funds should not be tarred with the same brush as complex investments tied to the U.S. residential property market.
The letter said it was essential for real estate funds' liquidity issues to be considered separately from hedge funds and private equity and said limits on leveraged should be removed from the directive.
The EU's directive has drawn heavy criticism from the hedge fund and private equity industries in recent months, while UK Treasury minister Paul Myners said last week the UK plans a bout of lobbying to try and soften it.
There has so far been little co-ordinated criticism from property industry bodies, although individual funds have voiced concerns over the proposed laws, which cover issues such as leverage and where funds can be sold. (Editing by David Holmes)