The Hedley Leisure and Gaming Property Fund (HLG) and National...

The Hedley Leisure and Gaming Property Fund (HLG) and National Leisure and Gaming (NLG), have sold the going concern interest in the Finnian’s Irish Tavern, Port Macquarie for $6.5m.

The off-market transaction was negotiated by Jones Lang LaSalle Hotels, and saw an undisclosed private investor walk away with the venue, which features a public bar, TAB, gaming room, bistro and on-site parking.

HLG’s freehold interest in the property was sold for $4.1m, while NLG sold its 50 year leasehold interest for $2.4m.

Jones Lang LaSalle Hotels’ senior manager, Joel Fisher, said the hotel offers good development potential, and is the first hotel divested by either group since listing on the ASX last year.

“This particular sale, with its strong yields, indicates that the market is still eager to buy well-located regional hotels that show upside for the incoming purchaser,” Fisher said.

NLG chief executive officer, Andrew Jolliffe, said they expect continued strong interest in NLG’s operating assets, given their high quality.

“Consistent with earlier advice, NLG is currently, and will continue to, actively assess divestment opportunities in order to recalibrate the company’s debt to equity structure,” Jolliffe said.

Finnian’s Irish Tavern was acquired by HLG late in 2006 and was considered a non-strategic asset for both HLG and NLG.