Paperwork for the $1 sale of Glenelg North's Buffalo Restaurant lodged with Holdfast Bay Council

Richard Finlayson is close to completing the sale of the Buffalo Restaurant

Owner Richard Finlayson has confirmed the contract for the sale has been exchanged after a month of negotiations.

Mr Finlayson says he understands the prospective buyer intends to continue using the Glenelg North landmark as a restaurant.

"It's going to be maintained, saved and continued," Mr Finlayson said.

"I'm delighted I didn't have to make good on my offer to dismantle it and there appears to be a white knight that will restore and continue to operate it.

"It's the result we always wanted."

The sale must now be approved by the Holdfast Bay Council, who owns the land where the vessel was located.

The council is expected to review the contract at a meeting on Tuesday night (February 11).

In November, Holdfast Bay rejected an offer from Mr Finlayson to buy the 30-year-old replica of the vessel that brought free settlers to South Australia in 1836 for the bargain basement price.

A council-funded audit of the Buffalo found it would cost $335,000 to restore it.

The report also said the ship failed to comply with building standards.

Mr Finlayson said he had started contacting salvage yards for quotes to dismantle the ship when the buyer came forward.

The Adelphi Tce restaurant served its last meals under Mr Finlayson's helm to a packed house on Christmas Day.

The sale relieves him of his obligations as guarantor, he said.

The prospective buyer declined to comment until the deal had been finalised.

Mr Finlayson, who ran the restaurant from 2001 to 2006, was forced to take the helm again in October 2012 because he was a guarantor for the previous operators, who were $83,000 behind in their rent payments to Holdfast Bay Council.

He said at the time if he could not turn it around in two years he would have it dismantled to avoid crippling maintenance costs.

Source:  The Australian - 6 February 2014