The stunning properties total about 2200 hectares combined and are in the Sutton Grange Valley, about 30 kilometres south of Bendigo and about 75 minutes' drive from Melbourne's CBD.

The adjoining livestock properties, known as "Eilan Donan" and "Breadalbane", have been bought by the Li family from China. "Eilan Donan" had been on the market for about four years before the sale.

"Eilan Donan" covers about 1460 hectares and had been in the MacRae family for more than 132 years. The MacRaes also owned neighbouring Breadalbane up until 1984.

Sales prices for the two properties have not been disclosed, but based on local land values the combined cost is likely to have exceeded $10 million.

Five generations of the MacRae family have lived and worked on the land after Alexander MacRae bought about 3000 hectares called Breadalbane Estate at an auction in 1882 held at the Castlemaine Mechanics Institute.

Today the area is a quiet and picturesque farming district east of the Calder Freeway dotted with imposing granite boulders.

Eilan Donan is home to thousands of mature Red Gums, a number of creeks and about 60 dams. Hundreds of thousands of native trees have been planted on the property by Jock MacRae and his family since the 1990s.

More evidence of the property's prime location comes from the top of the granite-covered hill behind the homestead; which offers sweeping 360 degree views. At night the glow of Melbourne's lights is visible in one direction, and in the other direction Bendigo's.

Mr MacRae, great-grandson of Alexander MacRae, said he sold "Eilan Donan" with mixed emotions. "A tough decision, emotional - a little bit, yes. But when you strip it all back it's a business decision and I'm convinced it's the right one, nobody's told me it's not," he said.

"We're re-positioning the family business and selling down what we're doing," he said.

Foreign investment was "an integral part of agriculture in Australia," Mr MacRae said. "I don't have an issue at all with foreign investment. I agree that there should be a register, I agree that we should know what's going on. But I think we should also say that we welcome foreign investment, let's see if we can do things together."

Mr MacRae will continue in agriculture but on a smaller scale, running a merino stud on a smaller holding at Metcalfe. He now has 2500 pregnant merino ewes to sell, listed for sale on an online auctions website.

Mr MacRae said Eilan Donan was "really well set up with water" and enjoyed reliable rainfall.

"We've just been incredibly lucky that great-grandfather did decide to purchase this property...We've worked bloody hard, but we've had a good standard of living," he said.

"It's good safe country, sitting next to Mount Alexander. It's a 28 inch (average annual) rainfall area. From my point of view he (Alexander) made an impeccable decision in what he bought," he said.

"I think Mr Li's been as clever as my great-grandfather. I might be a bit biased I suppose, but less than 10 kilometres up the road is the geographical dead centre of Victoria, a place called Mandurang. I can be on Southbank in an hour and 10 minutes, I can be on the Murray River in an hour and 10 minutes," he said.

Mr MacRae said he wanted the new owners to be successful and was happy to help them find suitable managers and staff.

A statement released on behalf of the Li family said: "Eilan Donan and Breadalbane have both been sold to the Li family from China, who are private enterprise beef cattle entrepreneurs."

It also said: "The two properties will be operated together as a single farm."