Myer, Baillieu family’s wealth firm eyes commercial property
Mutual Trust, the Myer and Baillieu family office which is now open to outside investment, says it is looking for opportunities in commercial real estate after values fell over the last year, illustrating how some wealthy families are taking a longer-term view of the asset.
Mutual Trust is the country’s largest and most significant multifamily offices, and traces its origins to 1921 when William Lawrence Baillieu established a vehicle to manage his family’s wealth. Sidney and Rupert Myer, along with Charles and Marshall Baillieu, sit on the office’s board.
Mutual Trust is run by Phil Harkness, pictured with the firm’s head of strategy, Tracy Conlan. Louie Douvis
The wealth management firm merged with the Myer family office in 2017, and now focuses on assisting other wealthy families maintain their wealth. “We provide everything these families need under one roof,” Mutual Trust’s chief executive, Phil Harkness told The Australian Financial Review.
Commercial property is facing a wave of revaluation after higher interest rates and work from home trends have undermined prices. In August, office landlord Dexus alone took a $1.2 billion hit to its portfolio.
“There is a bit of a mentality because I’ve seen it in the headlines ‘oh don’t go near property’ [because] the music’s going to stop,” said Jonothan Gourlay, Mutual Trust’s head of wealth. “But we’re looking really hard in that space now because there are more and more opportunities coming through that we think add value to our client’s portfolios.”
The firm’s clients are happy to take a five- to seven-year view and Mr Gourlay said they were looking at direct property syndicates and deals coming from external fund managers across office, commercial property and
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