Under an existing agreement, FHT has the first right of refusal over the property, which has a remaining lease of 45 years.
"The managers have considered the opportunity and is of the view that acquiring the property does not meet" FHT's prevailing investment strategy.
"As such, the managers have decided not to exercise the ROFR.
"The managers will continue to explore opportunities from both the sponsor and third parties which are in line with FHT's investment strategy," says FHT.
See also: Stoneweg: New sponsor, new chapter
FHT's refusal is the second acquisition offer rejected by an S-REIT over the past month.
On Feb 29, Paragon REIT turned down an offer by Cuscaden Peak to buy the Seletar Mall for $550 million.
The mall was later sold to Allgreen Properties, part of Malaysian tycoon Robert Kuok's empire.
FHT closed March 19 at 46 cents, unchanged for the day but down 9% year to date; Frasers Property closed at 83 cents, unchanged for the day and down 7.78% year to date.
