Fortuna owner Paul Banks said a Bendigo consortium had purchased the residential-zoned site for a 'high density' development.

“I am delighted and so is the purchaser. We have been in discussion through Maher Real Estate for several months, and have come to an agreement which has more than satisfied both parties,” Mr Banks said.

“On paper, the future development looks very attractive and pending council permit approval the outcome should be great all-round.”

Mr Banks said the deal had conditions but after talks with Heritage Victoria and given the city’s need for high and medium density development, he didn’t see any planning issues.

''I have viewed the proposed concept layout prepared by Tomkinson’s and it will be a very impressive place to call home. It will also give the Villa more prominence, creating an amphitheatre type environment,” Mr Banks said.

Mr Banks said the remaining 2.5 acres would be known as Fortuna Village and include a 25-lot boutique retirement village.

“It will be for the more independent type of retiree, people who want proximity to the city centre and healthcare facilities, but also won’t mind popping into the Villa for tea and scones. Plans for this will hit the Bendigo council planning office in the next few weeks,” he said.

Mr Banks said the 10-acre site housing the Fortuna Villa remained a work in progress.

“We intend to open with group/pre bookings on the last weekend of every month starting at the end of July, we will do two sessions a day which will take three hours each including plenty of quality local produce, music and detailed tour of the villa,” he said.