In an announcement to the ASX yesterday, Propertylink revealed it had rejected a non-binding, indicative, conditional and unsolicited proposal from Centuria, received on Friday.
The offer comes after Centuria took a 17 per cent stake in Propertylink earlier in September.
The Centuria proposal would see the company acquire all of Propertylink's funds management business as well as its industrial property portfolio.
The offer implies a value of approximately 95 cents per share, or $573 million, for the Propertylink business.
Propertylink said the offer undervalues the underlying value of the A-REIT's investment portfolio, its co-investment stakes and its institutional wholesale funds management platform.
"[The proposal] exposes Propertylink security holders to significant value risk arising from change of control and key person provisions in Propertylink's wholesale funds management arrangements," said the statement.
"It exposes Propertylink security holders to significant value risk due to the nature of CNI's listed funds platform, should those management arrangements be challenged."
Propertylink has appointed Goldman Sachs as its financial adviser and Herbert Smith Freehills as its legal adviser.
Centuria is being advised by Moelis & Company on the transaction.