Count Carl Gustav Wachmeister bought the prized station for more than $20 million, making it the largest rural property sale in the state since mid-2008.

It was previously owned by the Melbourne establishment Ballieu family, The Australian Financial Review reports.

The sale is expected to reawaken the depressed rural property market, which has been hampered by drought and fires, tighter credit conditions and a stronger Australian dollar.

Mt Elephant, which is described by many graziers as one of the best mixed farming properties in Victoria, had been on the market since 2008, when Anthony Baillieu put it to tender.