Australand has rejected an offer from fellow property company GPT Group for its commercial and industrial and investment property portfolio.
Late last week GPT made an indicative offer for Australand's investment property portfolio, and its commercial and industrial property business, for $140 million more than their current value.
Australand, which also owns residential properties, said this morning that the offer was too low.
"The board of Australand, together with its advisers, has carefully considered the proposal and has determined that the proposal does not provide a compelling value proposition and is not in the best interests of Australand's securityholders," the company said in a statement.
The GPT offer does not provide a sufficient premium or compensation to securityholders for the transaction costs that would be incurred by Australand, it said.
Australand said it does not intend to enter further negotiations with GPT.