A prominent corner building leased to a BWS bottle shop has sold recently for $4.13 million, highlighting the surge in popularity of convenience retail backed by big tenants.
Listed by Ray White Commercial, Western Sydney, 68 Morts Road & 46 Newman Street, Mortdale, sold for $4.13 million plus GST, with a yield of 3.92%, at auction on Monday.
A prominent corner location with the convenience of not getting out of your car. Picture: realcommercial.com.au
It’s the first time the site – in the St George area – has sold for more than four decades, held by a family investor for the entire time.
The key fundamentals of the property are strong, with 416sqm of building space on a block size of 809sqm, backed by a big-name tenant in BWS (Endeavour Group).
It comes with a five-year lease expiring in 2027, plus two further five-year options, and scheduled rent growth capped at 4%.
Selling agent Andrew Sacco said the property had 185 enquiries, reflecting the popularity of the sector and region.
Bottle of Pepperjack Shiraz, thanks. Picture: realcommercial.com.au
“This level of enquiry highlights just how tightly held and sought-after these drive-through retail investments are, particularly when underpinned by a national tenant like BWS,” Mr Sacco said.
“Assets offering secure long-term income and operational convenience, such as drive-through formats, continue to outperform and attract strong competition from private investors.”
Mr Sacco said it had sold to another locally-based, private investor, and that it was popular for its “recession-proof” fundamentals.
Endeavour Group (ASX: EDV) currently has a market cap of $5.87 billion, and is the largest alcohol retailer in Australia with more than 1,700 BWS and Dan Murphy’s locations and around 400 pubs in its portfolio.
The site has a large footprint and is close to many Mortdale amenities. Picture: realcommercial.com.au
Convenience retail takes off
The sale of the Mortdale BWS site comes as investors are increasingly chasing defensive assets, with the convenience retail sector underpinning the popularity.
This includes retail outlets like bottle shops and service stations, and a recent report from CBRE shone a light on the sector’s popularity.
In 2025, transaction volume on convenience retail outlets surpassed $530 million across 89 transactions, near the record seen in 2021.
Yields peaked in 2024 at 6.8%, and in 2025 average cap rates exceeded 6%.
Convenience retail is a strong sector, underpinned by global tenants and long leases. Picture: CBRE
Queensland had the strongest level of transaction volumes, surpassing $236 million across 2024 and 2025, for an average yield of 6.25%.
The report opined that Australia’s electric vehicle uptake and ageing fleet of combustion engine vehicles, currently at 11.2 years on average, should see steady demand continue in the sector.
However, the data also points to interest rate sensitivity, with transaction volumes dropping sharply in 2022 and 2023 as the RBA’s interest rate tightening cycle took hold.
With three rate hikes out of three RBA meetings so far in 2026, experts have advised to chase assets with strong cashflow, and to diversify.
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