McFie's hospitality assets on the block

Michael McFie, the publican who snapped up hospitality assets amid the global financial crisis, has relinquished part of his empire to receivers, with millions of dollars owed.

Properties placed in the hands of receivers include the Agnes Water Tavern in Queensland and a motel in Alice Springs.

Justin Walsh and Adam Nikitins of Ernst & Young secured control on May 21 of the Agnes Water pub, which was shut for some days but has since reopened and will be placed on the market. Ernst & Young is preparing to sell Mr McFie's Alice Springs motel.

It is understood both properties had debts owing to Westpac of about $20 million collectively.

Mr Walsh said the Agnes Water Tavern was on the farthest north surf beach of Australia's east coast.

"Since it has been reopened, it has been trading well," Mr Walsh said.

"There has been a lot of unsolicited interest, so we expect it will sell well."

Reports suggest the McFie Group of companies purchased the pub in 2006 for $7.5m and it has been renovated. It was expected the pub would sell for almost $20m. The hotel in Alice Springs was expected to sell for as much as $10m.

Mr McFie's business interests sold the Mercure Port Douglas Treetops Resort last year to US-based hotel operator Wyndham Hotel Group.

Mr McFie offloaded Tasmania's Cradle Mountain Lodge this year. He purchased it in 2009 for $21m from GPT Group. A group represented by former Macquarie Group Real Estate head Bill Moss was the buyer, paying $25m.

Mr McFie still owns Melba's on the Park nightclub on the Gold Coast, which he reportedly purchased from receivers in 2010 for $16.5m.

Source: The Australian, 19 July 2012