In the past week there have been two large sales in Sydney and the south coast. The assets have been attractive to private investors who want a mix of gaming, food and entertainment.

One of the sales was Norton's on Norton in Leichhardt, which was bought for an undisclosed sum by Peter Gallagher, the owner of the P.J. Gallagher's pub in the city.

The national director of pub investment sales for Jones Lang LaSalle, John Musca, said the sale generated strong interest because the pub was well known and more than just a gaming venue.

He and his associate director, Sam Handy, also sold the Hotel Coniston at Wollongong this week to publican Jaz Mooney for $5.9 million.

Mr Musca said demand was high for well-managed, well-located assets that did not get most of their revenue from poker machines.

Amid the sales is the ongoing divestment of the National Leisure & Gaming Limited portfolio, which remains a messy procedure.

Coles and Woolworths are also in the pub market, with both chains planning to set up liquor stores near their supermarkets.

Another site on the market is the Haymarket Hotel, at 661 George Street, in the city's tightly held Chinatown precinct.

This is only the second time in 90 years that the building has been on the market.

The premises are unique in that they have strong commercial rental derived from the upper five levels of office space, as well as strong cash flow from the hotel on the ground floor and basement.

The hotel has 21 poker machines and street frontages to George and Sussex streets. The hotel component has been developed as an industry showpiece, with several million dollars spent converting the ground floor and basement, as well as creating a mezzanine level.

It is being marketed by three agents: Manenti Quinlan and Associates, Cooper Hotels and Richardson & Wrench Newtown. The building has the potential for more redevelopment on the upper levels, with appropriate approvals.

The director of the hotel division at Manenti Quinlan, Gerry Quinlan, said the hotel would appeal to domestic and international operators and investors.

''Despite the draconian gaming legislation, pubs that have a diversified mix of food, entertainment, poker machines and security will be quite keenly sought after,'' he said.

''Many publicans are realising this and are investing in high-profile chefs and live music to appeal to a variety of customers.

''Pubs hit problems when they spent too much on fitout and forgot their long-standing clientele.''

Mr Quinlan said he expected the fire sales and bankruptcies that have dogged the sector to disappear and pub investors would see a return to profitability.

The principal of Cooper Hotels, Glen Cooper, said competition would be strong for the Haymarket Hotel site because freehold hotels rarely came on to the market in the Chinatown precinct.

The auction will be held on June 14.