The price is significantly lower than the $3 million the property initially went for at auction on April 12.

"The highest bidder at the April 12 auction of the Fortuna property in Bendigo could not complete the contract," a Defence Department spokesperson said.

"Following discussions with other interested parties, on May 7 Mr Paul Banks signed a contract to purchase the Fortuna property for $2.21 million. 

"The deposit monies have been received and the sale is scheduled for completion on 27 June 2013.

"The heritage covenant to protect the Commonwealth heritage values of the Fortuna property will remain in the contract of sale."

Earlier today: FORTUNA owner Paul Banks has expansive plans for the historic villa, including a boutique teahouse, an aged care facility and a brewery.

Mr Banks will take over ownership of the former home of George Lansell on 

July 1 after paying a rumoured $2.5 million for it after the initial buyer failed to pay the deposit.

The Sutton Grange hobby farmer, who owns a marketing company, plans to restore the villa and develop parts of the 7.5-hectare site.

Mr Banks said he hoped to have tours of the historic building and its garden, and encouraged other businesses to house their enterprises there.

“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.

“People will have to contribute a small amount for the tour and they’ll be able to have something to eat and drink before they leave.

“We also want to encourage other developments, like the old mapping room would make a perfect brewery. 

“We don’t have one here. Someone the likes of Little Creatures, should come up. 

“We’ll talk to all of those people and put options up there and if they want to be part of it, that’s great.”

Mr Banks said the first priority was to remove the 1960s army barrack buildings and start restoring the villa.

“It’s structurally well built. 

“It just needs a paintbrush and some TLC. 

“We’ll roll our sleeves up and get it ready so we can open it up to the town and the people going through it.

“Anything with a cream brick doesn’t sit in well with that magnificent structure. 

“Some will be converted into apartments on the old parade ring which has to be high density due to soil issues. 

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

He said he would be holding talks with Fortuna Action Group, Friends of Fortuna and the Bendigo Historical Society shortly to discuss his plans.

“A lot of this, I will plan and leave it to the people who specialise in that area. 

“I just have a vision and I think it’s a solid one.”