The 64-hectare property near Trentham, a regenerating forestry site, was purchased by the organisation to ensure its ecological values are protected into the future.

It will now be sold on with a conservation covenant, a legally binding agreement, to a new owner.

Trust for Nature, one of Australia's oldest conservation organisations, identified the area as a conservation priority as it is important habitat for endangered species such as the powerful owl.

The organisation's Dr Mat Hardy said the previous owner was keen to see the property go into the hands of somebody who valued its habitat.

"Twelve landscapes across Victoria have been prioritised in Trust for Nature's Statewide Conservation Plan. They contain some of Victoria's rarest and most threatened ecosystems and species. This property sits within one of these 12 sites, in the Midlands Focal Landscape."

Convener of Wombat Forestcare, Gayle Osborne, said the group was pleased the important habitat would be permanently protected.

"At a time when we have so many species threatened with extinction, it is important that we do not only rely on public land to ensure their survival," she said.

"We congratulate the previous owners and Trust for Nature for conserving the property and hope this will inspire others to value indigenous flora and fauna on their properties."

The property is now part of the organisation's revolving fund program through which it buys and protects private land of conservation significance which it then on-sells to people who will protect it.

All proceeds generated through the sales of these properties are used to purchase and protect additional land.

So far, the organisation has purchased more than 70 properties, of which it has sold 61, and protected more than 6,880 hectares.