Fortuna in Bendigo has been sold for $2.21 million to Mr Paul Banks according to a statement released by the Defence Department.

There are expansive plans for the historic villa, including a boutique teahouse, an aged care facility and a brewery.

Mr Banks, a Sutton Grange hobby farmer, owns a marketing company and plans to restore Fortuna and develop parts of the 7.5-hectare site.

“We have to protect this villa,” he said. “The way to protect it is to complement it and that’s what we intend to do.”

Some of the buildings will be converted into apartments he said.

“That might become a retirement village or something like that.”

Mr Banks intends to discuss options with Fortuna Action Group, Friends of Fortuna and the Bendigo Historical Society.

The $2.21m sale is substantially lower than when Fortuna went for auction in April at $3 million.